BANDAR SERI BEGAWAN, May 23 (Borneo Bulletin/ANN): The non-oil and gas sector which contributed 51.2 per cent to the total gross value added (GVA) recorded an increase of two per cent while the oil and gas sector which contributed 48.8 per cent decreased by 4.8 per cent.
The decline of the oil and gas sector caused Brunei’s economy to grow at a negative rate in 2021 by 1.6 per cent.
The decline in the oil and gas sector in 2021 was due to lower production of crude oil, natural gas, and liquefied natural gas (LNG).
Meanwhile, the increase in the non-oil and gas sector was driven by the rise in subsectors such as wholesale and retail trade, non-oil and gas manufacturing and business services.
In the fourth quarter (Q4) of 2021, the Sultanate’s gross domestic product (GDP) growth rate declined by 1.4 per cent year-on-year due to a decrease in the oil and gas sector by 4.1 per cent. Meanwhile, the non-oil and gas sector recorded an increase of 1.4 per cent.
Brunei’s GDP at current prices in Q4 2021 was valued at BND5.2 billion compared to BND4.1 billion in Q4 2020.
The oil and gas sector, comprising oil and gas mining and manufacture of LNG, accounted for 50.4 per cent of the total GVA. Meanwhile, the non-oil and gas sector, which includes downstream activities such as the manufacture of petroleum and chemical products, contributed 49.6 per cent.
The decline in the oil and gas sector was due to a decrease in the production of crude oil from 105,000 barrels per day in Q4 2020 to 103,400 barrels per day in Q4 2021.
Natural gas production also recorded a decrease from 32.5 million cubic metres per day in Q4 2020 to 29.8 million cubic metres per day in Q4 2021. In addition, LNG production declined from 901,071 MMBtu per day to 774,076 MMBtu per day during the same period.
The reduction in crude oil and natural gas production was due to shutdown turnaround activities. Meanwhile, the decline in LNG production was due to limited gas supply and maintenance activities at one of the LNG plant facilities.
However, the non-oil and gas sector continued to show positive developments despite the country facing the second wave of COVID-19. Finance, air transport and non-oil and gas manufacturing were among the subsectors that showed improvement in the Q4 2021.
The rise in the finance subsector was due to an increase in insurance activities in line with the increase in the number of life insurance take-up.
The air transport subsector also increased in Q4 2021, in line with an increase in the number of arrivals and departures of air passengers as entry and exit from the country have been permitted according to the conditions set by the Prime Minister’s Office.
The expansion of the non-oil manufacturing subsector corresponded to an increase in food manufacturing and construction material production.
In addition, the agriculture, forestry and fishery sector also continued to show encouraging performance since the second quarter of 2020.
In Q4 2021, this sector has increased by 6.1 per cent due to fishery and forestry production activities. An increase in the fishery subsector was in line with the rise in the capture industry for small-scale and commercial-scale fisherman activities. The increase in sawn timber production was the major contributor to the growth in the forestry subsector.
However, this sector’s contribution to GVA is still at a low level of only 1.1 per cent compared to the oil and gas sector at BND56.3 million.
By expenditure approach, a decline in GDP growth in Q4 2021 was mainly due to a decrease in the domestic demand by six per cent, driven by a reduction in gross capital formation for both government and private.
However, this growth was moderated by an increase in the exports of goods and services by 17.2 per cent year-on-year, mainly driven by exports of mineral fuels. The government’s final consumption expenditure and the household final consumption expenditure also recorded increases of 6.5 per cent and 1.2 per cent, respectively.
GDP is a measure of the total value of goods and services produced in a particular period after deducting the cost of goods and services used up in the process of production.
The GDP data and information for 2021 takes into account the updated data and information for the first quarter to the third quarter of 2021. The GDP full report for Q4 2021 and annual 2021 is available from DEPS’s website at www.deps.gov.bn. - Borneo Bulletin/ANN