In the first quarter of 2022, the Non-Oil & Gas Sector recorded an increase of 1 percent growth, meanwhile the Oil & Gas Sector decreased by 9 percent. The decline of the Oil and Gas Sector has resulted in the negative growth of Brunei Darussalam’s Gross Domestic Product, GDP, in the first quarter of 2022 by 4.2 percent compared to the previous year.
The Department of Economic Planning and Statistics, Ministry of Finance and Economy in its press release shared the decline in the Oil and Gas Sector was due to the reduction in crude oil and natural gas production which was due to maintenance and rejuvenation activities. However, the Non-Oil and Gas Sector remained positive as downstream activities picked up with increased production of petroleum products including Diesel and RON92, as well as the new production of chemical product specifically urea fertilizer.
The Wholesale & Retail Trade subsector continued to show growth, primarily driven by an increase in wholesale activities including medical equipment items, food and beverages. This encouraging performance was supported by an increase in domestic demand, backed in part by the relaxation of domestic and border restrictions. The growth in the Transport subsector was primarily driven by the expansion of Water Transport and Air Transport in line with an increase in the number of air passengers. The easing of COVID-19 preventive measures and border restriction has led to an increase in travel activities, hence contributing to the growth of hotel sector.
The Agriculture, Forestry and Fishery Sector has also continued to show encouraging performance with an increase by 0.8 percent. An increase in the Fishery Subsector was mainly due to the rise in the capture industry for the small-scale fisherman activities. Meanwhile, the rise in the Agriculture Subsector was attributed by the growth in paddy, vegetable, and fruit production. An increase in the production of round and sawn timber was the most significant contributor to the expansion of the forestry sector.
By expenditure approach, a decline in GDP growth in the first quarter of 2022, was mainly due to a decrease in the Net Export, Capital Expenditure primarily the private investment in machinery and equipment. However, this growth was moderated by an increase in the Government Final Consumption Expenditure and the Household Final Consumption Expenditure by 3.8 percent and 5.5 percent.
The GDP full report for the First Quarter of 2022 is available from DEPS’s website.
Source: Radio Television Brunei