Department of Economic Planning and Statistics - Economic Overview

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Brunei Darussalam's Economic Blueprint
RKN 11
Brunei Darussalam Key Economic Developments (BKED) Q2 2024

ECONOMIC OVERVIEW
Brunei Darussalam Key Economic Developments (BKED) Q2 2024

	Brunei Darussalam's economy grew in Q2 2024, underpinned by improvements in both the Oil and Gas Non-Oil and Gas sectors. The Oil and Gas Sector expanded on the back of higher production of crude oil, natural gas and liquefied natural gas (LNG). Meanwhile, the Non-Oil and Gas Sector gained from improvements in several subsectors, notably Manufacture of Petroleum and Chemical Products, backed by higher production of petrochemicals, urea fertilizer and methanol; Wholesale and Retail Trade, attributed to a rise in wholesale activities, particularly sale of motor vehicles; Air Transport, fuelled by a rise in air passenger volume; and Communication, in view of increase in the number of mobile and internet subscribers.
	The Consumer Price Index (CPI) decreased marginally in Q2 2024 mainly due to a fall in the Non-Food Price Index, offsetting the increase in the Food and Non-Alcoholic Price Index. The decrease in non-food prices was mainly seen in several commodities, notably Transport; Communication; and Housing, Water, Electricity, Gas and Other Fuels. Meanwhile, the increase in food prices was mainly observed in commodities such as Non-Alcoholic Beverages following an amendment to the customs and excise duties on sugary drinks; Milk, Dairy Products and Eggs, mainly due to an increase in eggs price; and Rice and Cereals due to higher imported raw material prices for biscuits and cookies products.
	Trade balance recorded a surplus in Q2 2024 as exports rose higher than imports. The increase in exports was mainly driven by crude oil, petrochemical products, methanol and urea fertilizer. Meanwhile, imports also rose, mainly comprising mineral fuels required as feedstock for the petrochemical industry. FDI flows in Q2 2024 turned positive due to higher equity component, largely attributed to increased reinvested earnings. In addition, debt repayments decreased reflecting stronger cash flows were generated, reducing reliance on loans from parent or sister companies abroad. Meanwhile, FDI stock increased attributed to a rise in equity, boosted by companies' active reinvestment of profits.
	Fiscal balance remained in deficit in Q2 2024, albeit narrowing compared to the previous year. As such, government revenue rose, offsetting the slight increase in government expenditure. The increase in government revenue corresponded with a rise in oil and gas revenue driven by higher production and crude oil prices. Other than that, the increase in returns from government operations (mainly taxes) and excess revenue of statutory bodies also contributed to the increase in government revenue. Meanwhile, the modest increase in government expenditure was primarily due to an increase in ordinary expenditure, which was primarily driven by a rise in Personnel Emoluments (PE) and other charges annual recurrent (OCAR) expenditure.

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)