Department of Economic Planning and Statistics - Economic Overview

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National Development Plan

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Brunei Darussalam's Economic Blueprint
RKN 11
Brunei Darussalam Key Economic Developments (BKED) Q1 2025

ECONOMIC OVERVIEW
Brunei Darussalam Key Economic Developments (BKED) Q1 2025

	Brunei Darussalam's economy contracted in Q1 2025, due to declines in both the Oil and Gas and Non-Oil and Gas sectors. The decline in the Oil and Gas Sector was caused by lower production of liquefied natural gas (LNG) production, whilst crude oil production rose. As for the Non-Oil and Gas Sector, among the subsectors contributing to its downturn include Manufacture of Petroleum and Chemical Products, Finance, Business Services, Fishery, Other Manufacturing, and Health Services.
	The Consumer Price Index (CPI) declined in Q1 2025, mainly due to declines in both the Food and Non-Food price indices. The drop in food prices was largely attributed to a decrease in the cost of commodities such as meat; fish & seafood; and milk; dairy products and eggs. The decline in non-food prices was mostly seen in commodities such as transport; housing, water electricity, gas and other fuel; and furnishings, household equipment and routine household maintenance.
	Despite a reduction in exports, trade balance recorded a surplus in Q1 2025, with imports also experiencing a decrease. The decline in exports was mainly due to lower export values for oil and gas, as well as petrochemical products. Similarly, imports dropped, primarily due to a slowdown in the importation of feedstock for the downstream petrochemical industry, such as crude oil, fuel oil and motor spirits. Foreign Direct Investment (FDI) flows increased in Q1 2025, driven by a significant rise in debt inflows due to higher loans from foreign-related companies to finance operations, expansions, or new investments. However, the growth in FDI flows was moderated by a decline in equity inflows.
	The fiscal balance remained in deficit in Q1 2025, mainly due to a decline in government revenue, despite a decrease in government expenditure. The drop in revenue was largely due to lower oil and gas revenues, stemming from falling crude oil and LNG prices, as well as reductions in government operations revenue (primarily taxes, fees, and charges) and lower excess revenue of statutory bodies. On the expenditure side, the decrease in government spending was primarily attributed to projects that remain in the planning stage.

English

KEY ECONOMIC INDICATORS

GROSS DOMESTIC
PRODUCT
(GDP)

INFLATION RATE

TRADE BALANCE

UNEMPLOYMENT
RATE

2023

Q1 2024

JAN - FEB 2024

2022

1.4%

-0.3%

1.1 BILLION

(SURPLUS)