Brunei Darussalam's economy has recorded declining in the second quarter of 2018. In a Media release by the Department of Economic Planning and Development, DEPD, in the second quarter of 2018, Brunei Darussalam's gross domestic product (GDP) at current prices was estimated at 4 point 6 billion dollars compared to 4 point 3 billion dollars in second quarter of last year. The Oil & Gas sector was valued at 2 point 8 billion dollars accounting for 60 point 7 per cent of the total gross value added.
At constant prices, GDP recorded negative growth of 2 point 8 per cent year-on-year. This was mainly associated with the 60 point 4 per cent decrease in net exports of goods and services. Meanwhile, domestic demand, specifically capital expenditure of the private sector, continued to grow by 32 point 8 per cent year-on-year after recording 25 point 8 per cent growth in the previous quarter.
On the supply side, the negative performance of the economy in the second quarter was due to a decline in the Services Sector by 4 per cent year-on-year. According to the DEPD, the decline was mainly due to a contraction in the Finance Subsector by 37 per cent attributed to the decline in investment income related to banking services' activities. However, increases in the Government Services Subsector and the Wholesale and Retail Subsector helped moderate the decline.
The Industrial Sector also fell, recording a 2 per cent decline year-on-year mainly due to a fall in the Oil and Gas Mining Subsector by 2 point 3 per cent. Crude oil production decreased by 8 point 3 per cent, from 106 point 4 thousand barrels per day in the second quarter of 2017 to 97 point 6 thousand barrels per day in the second quarter of 2018 and natural gas production decreased by 5 point 4 per cent in the same period from 33 point 8 million cubic metres per day to 32 million cubic metres per day. Aside from that, the Manufacture of Liquefied Natural Gas (LNG) and Methanol Subsector also recorded a decline of 3 point 5 per cent attributed to LNG production decreasing from 9 hundred 65 thousand, one hundred and 82 MMBtu per day in last year's second quarter to 8 hundred 80 thousand 8 hundred and 96 MMBtu per day in the this year's second quarter. However, the Construction Subsector expanded 6 point 5 per cent in line with the development of construction activities including projects at Pulau Muara Besar and Sungai Liang Industrial Park.
The Agriculture, Forestry & Fishery Sector also recorded negative growth, declining by 5 point 7 per cent due to a fall in the output of the Vegetables, Fruits & Other Agriculture Subsector, Fishery Subsector and Forestry Subsector. DEPD explained, a decline in the production of vegetables was the main contributor to the decrease in the Vegetables, Fruits & Other Agriculture Subsector. On the positive side, the Livestock and Poultry Subsector expanded by 3 point 6 percent as a result of higher production of broiler chickens.
Source: Radio Television Brunei