Brunei Darussalam’s economic growth is forecast to pick up this year at 4.1 per cent benefitting from high oil and gas prices, ongoing global recovery and low-base effect. Next year, the gross domestic product (GDP) growth is projected to be 2.3 per cent.
This was highlighted by ASEAN+3 Macroeconomic Research Office (AMRO) in its annual ASEAN+3 Regional Economic Outlook (AREO) report on Tuesday.
The report said the Sultanate’s economy declined for four consecutive quarters year-on-year (y-o-y) through third quarter (Q3) of 2021. Real GDP declined by 1.7 per cent y-o-y in the first nine months of 2021, driven mainly by contraction in the oil and gas sector.
Turnaround activities and a limited onsite workforce because of COVID-19 reduced the sector’s ability to recover from unscheduled deferment of well, reservoir and facilities management activities.
The non-oil and gas sector registered positive growth in Q3 2021, thanks to subsectors such as finance, communication, health services and manufacturing of food and beverages.
Growth in the non-oil and gas sector was mainly driven by increased domestic demand.
The AMRO report added that retail sales performed well in the first nine months of 2021 as restrictions on overseas travel prompted a rise in domestic consumption. However, it dropped by 5.2 per cent in Q3 2021 as movement restriction mandates took effect.
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April 27, 2022
