| Hakim Hayat |
IN THE third quarter of 2018 (Q3 2018), Brunei Darussalam’s gross domestic product (GDP) at current prices was estimated at BND4.5 billion compared to BND4.0 billion in Q3 2017, according to the Department of Economic Planning and Development (JPKE).
The Oil and Gas Sector was valued at BND2.6 billion, accounting for 57.3 per cent of the total gross value added (GVA).
At constant prices, GDP recorded a contraction of 1.2 per cent year-on-year. This was mainly associated with the 75.2 per cent decrease in net exports of goods and services. Meanwhile, domestic demand, specifically capital expenditure of the private sector, continued to grow by 33.1 per cent year-on-year after recording 32.8 per cent growth in the previous quarter.
On the supply side, the negative performance of the economy in the third quarter was due to a decline in the Industry Sector by 2.2 per cent. This was mainly due to a contraction in the Manufacture of Liquefied Natural Gas (LNG) and Methanol Subsector by 7.4 per cent attributed to LNG production decreasing from 949,349 MMBtu per day in Q3 2017 to 861,309 MMBtu per day in Q3 2018. This followed by a decrease in the Oil and Gas Mining Subsector by 0.7 per cent in line with the decrease in natural gas production by 7.5 per cent during the same period from 34.0 million cubic metres per day to 31.4 million cubic metres per day.
The Agriculture, Forestry and Fishery Sector also recorded negative growth, declining by 1.2 per cent due to a fall in the output of the Vegetables, Fruits and Other Agriculture Subsector and Fishery Subsector. A decline in the production of vegetables was the main contributor to the decrease in the Vegetables, Fruits and Other Agriculture Subsector. On the positive side, the Forestry Subsector and Livestock and Poultry Subsector expanded by 10.7 per cent and 0.5 per cent, respectively. Meanwhile, the Services Sector showed an increase of 0.5 per cent. This positive growth was mainly due to increases in both the Government Services Subsector and the Real Estate and Ownership of Dwellings Subsector by 4.2 per cent and 2.4 per cent, respectively.
GDP is a measure of the total value of goods and services produced in a particular period after deducting the cost of goods and services used up in the process of production. The GDP full report for the 3rd quarter of 2018 is available at www.depd.gov.bn.