Brunei Darussalam’s economy is poised for further strengthening this year, driven by a strong recovery in 2023 and robust activities in the non-oil and gas sector, according to a report by the ASEAN+3 Macroeconomic Research Office (AMRO).
The downstream oil and gas industry is expected to remain supportive of growth, with planned diversification into new products. Despite challenges in ongoing oil and gas rejuvenation efforts, activities are projected to improve, leading to enhanced production in the near term. The government’s commitment to accelerating diversification towards less carbon-intensive industries aims to bolster economic resilience.
The report, based on AMRO’s Annual Consultation Visit to Brunei Darussalam in November 2023, and data available up to February 29, 2024, highlights Brunei’s economic developments and outlook. The economy expanded by 1.4 per cent in 2023, with growth expected to strengthen to 2.7 per cent this year, driven by exploration and development activities in offshore oil and gas fields.
Encouragingly, the non-oil and gas sector is anticipated to lead the economic recovery, supported by expansions in downstream activities, agri-food, transportation, and tourism sectors.
Inflationary pressures have eased, reflecting lower commodity prices and supply chain normalization post-pandemic. Headline inflation is projected to increase to 1.4 per cent this year, driven by food inflation.
Source: Borneo Bulletin
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May 28, 2024
