Brunei’s economy grew by 2.0pc in Q3 of 2019

In the third quarter of 2019, Brunei Darussalam’s gross domestic product (GDP) at current prices was valued at BND4.3 billion compared to BND4.5 billion in Q3 2018. The oil and gas sector was valued at BND2.3 billion accounting for 54.0 per cent of the total gross value added (GVA).

According to a press statement, Brunei’s GDP recorded positive growth of 2.0 per cent year-on-year in Q3 2019, at constant prices. The growth was mainly associated by an increase in the non-oil and gas sector by 3.3 per cent. On the other hand, the oil and gas sector increased by 1.0 per cent.

The growth in the non-oil and gas sector was mainly due to an increase in the Finance Subsector by 19 per cent, attributed by an increase in the banking services’ activities.

The increase in the oil and gas sector was mainly due to an increase in production of crude oil from 105.5 thousand barrels per day in Q3 2018 to 113.3 thousand barrels per day in Q3 2019.

By Kind of Economic Activity, the positive performance of the economy in the third quarter 2019 was due to an increase in services sector by 4.8 per cent. Among others, this growth was due to the increase in the finance subsector, wholesale and retail trade subsector and health subsector.

The industry sector recorded an increase of 0.4 per cent. This was mainly due to the increase in production of crude oil and an increase in the electricity and water subsector.

However, the agriculture, forestry and fishery sector declined by 4.9 per cent due to a decrease in the fishery subsector and livestock and poultry subsector. The decline in the production of small scale capture industry was the main factor of the decrease in the fishery subsector.

On the other hand, the decrease in livestock and poultry subsector was due to the decline in the production of buffaloes, broiler chicken and chicken eggs. However, vegetables, fruits and other agriculture subsector and forestry subsector recorded increases of 12.6 per cent and 13.7 per cent respectively.

By expenditure approach, GDP recorded an increase mainly due to an increase in the net exports of goods and services. On the other hand, capital expenditure declined by 19.5 per cent year-on-year, after a 16.4 per cent growth in Q2 2019.

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 third quarter of 2019 is available from the Department of Economic Planning and Statistics’ website at www.depd.gov.bn.