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ECONOMIC OVERVIEW
Brunei Darussalam Key Economic Developments (BKED) Q2 2022   


A steady and sustained growth of the Non-Oil & Gas Sector was the highlight in Q2 2022, buoyed by encouraging developments in manufacturing, led particularly by the petrochemical industry. Several service subsectors also registered upturns in growth such as Business Services due to rising demand for professional and technical services of oil and gas-related activities; Communication backed by increasing internet and mobile subscriptions in view of some government and private agencies and educational institutions still practicing work-from-home policies; and Air Transport driven by increasing volume of air passenger movements in view of further easing of pandemic-related restrictions. Nevertheless, declines in oil and gas production proved a major setback, inevitably weakening the overall growth of the economy.

Both food and non-food prices increased, extending the trend of rising inflation rates. Food price hikes were primarily seen in cooking oil, chicken, beef & buffalo meat, and fish & seafood with rising import costs as one of the contributing factors. Meanwhile, elevated prices in the non-food category were among others, mainly attributed to higher costs of transport and utilities.

Trade balance recorded a surplus in Q2 2022 as exports rose higher, surpassing last quarter's record and offsetting the continued upsurge in imports. Outsize growth in exports was underpinned by petrochemical exports, which continued to gather momentum from last quarter’s high. Meanwhile, exports of mineral fuels (crude oil and LNG) increased, gaining primarily from higher prices despite lower volumes. On the other hand, the rise in imports corresponded with developments in the petrochemical industry, importing sizeable volumes of mineral fuels, required as feedstock for production.

Fiscal balance turned surplus in Q2 2022, ending the streak of deficits recorded since Q2 2019. The surplus was brought about by a significant increase in government revenues driven by higher oil and gas prices while expenditure fell on account of declines in other charges annual recurrent (OCAR), personnel emoluments, charged expenditure and development expenditure.



 



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KEY ECONOMIC INDICATORS

GROSS DOMESTIC
PRODUCT
INFLATION
INTERNATIONAL
MERCHANDISE TRADE
UNEMPLOYMENT
RATE
-1.6%1.7%
BND 3.34 BILLION
(SURPLUS)
7.4%
2021202120212020