Brunei’s economy slips 2.3%

Fitri Shahminan
BANDAR SERI BEGAWAN

BRUNEI’s economy continued to decline year on year, this time by 2.3 per cent in 2014, owing to a slowdown in the oil and gas sector, the Department of Economic Planning and Development Board (JPKE) reported yesterday.

This is a furher decline from the 1.8 per cent year-on-year contraction recorded in 2013.

The JPKE said the oil and gas sector, which accounted for more than half of the Sultanate’s gross domestic product (GDP), fell by 3.7 per cent in 2014.

The non-oil and gas sector declined by 0.4 per cent.

By expenditure approach, the JPKE attributed GDP’s decline to a 34.6 per cent decrease in gross capital formation, imports of goods and services by 19.7 per cent and domestic consumption by three per cent.

Brunei’s exports rose by 4.3 per cent in 2014, while government spending increased by 2.9 per cent.

In the fourth quarter of 2014 alone, Brunei’s GDP grew by 0.2 per cent on year. The 2.7 per cent growth in the non-oil and gas sector offset the 1.6 per cent decline in the oil and gas industry.

The gains in the agriculture and services sectors supported the non-oil and gas sector in the fourth quarter.

Agriculture, forestry and fishery sectors rose by 3.1 per cent thanks to a 25.7 per cent rise in the production of vegetables and fruits as well as an 8.6 per cent growth in forestry production.

The services sector increased by 2.2 per cent on the back of higher growth posted by finance, transport and education service sectors.

The industrial sector decreased by 1.1 per cent pressured by a poor performance in oil and gas mining.

Brunei’s GDP at current prices in the fourth quarter of 2014 was estimated at $5.245 billion compared to the $5.209 billion in the previous quarter.

JPKE said the fourth quarter national income accounts is the first quarterly report to be released that used 2010 as the base year in calculating the country’s gross domestic product.

JPKE previously used 2000 as the base year in calculating GDP.


Sumber - The Brunei Times