Economy tumbles 9.7% in Q3
BANDAR SERI BEGAWAN
BRUNEI’S economic output tumbled 9.7 per cent in the third quarter of 2013 due to a significant decline in the performance of both the oil and gas sector, and industry.
During the quarter, the country’s gross domestic product (GDP) was estimated at $4.66 billion at current prices, data from the Department of Economic Planning and Development (JPKE) show. This was a decline of almost two digits from the $5.16 billion recorded in the same period of 2012.
The department in its press statment did not say what sector caused the economic decline in the third quarter of last year.
However, statistics released by the JPKE show that the oil and gas sector’s economic performance in the quarter decreased 11.7 per cent year on year.
The industrial sector, weighed down heavily by a 17.2 per cent slump in mining, posted a year-on-year decrease of 9.7 per cent.
Industry’s poor performance in the third quarter followed a growth rate of 0.05 per cent in the second quarter of 2013.
The Brunei economy recorded positive performance in other sub-sectors of industry.
Construction grew 3.5 per cent year on year, followed by manufacturing at 3.1 per cent and electricity and water at 1.9 per cent.
The non-oil and gas sector, however, continued to increase economic output by 2.4 per cent year on year, the department said.
Growth came mainly from the services sector, which raised its output by 2.4 per cent after also recording an increase of 4.3 per cent year on year in the second quarter 2013.
Real estate and ownership of dwellings contributed the highest growth of 4.8 per cent year on year followed by private services with 3.6 per cent, finance at 2.8 per cent, trade 2.2 per cent, transport and communication 2.1 per cent and government services at 1.5 per cent.
The agriculture, forestry and fishery sector rose by one per cent year on year, bouncing from a decrease of 6.2 per cent in the second quarter of last year.
This was mainly attributed to the growth of the agriculture sector by 3.3 per cent after a decline of 4.1 per cent in the previous quarter.
“By expenditure approach, the decline in GDP was due to the decrease in exports of goods and services by 9.2 per cent year on year and government consumption expenditure by 0.3 per cent year on year,” the JPKE said.
“Meanwhile, imports of goods and services recorded the highest growth of 4.9 per cent followed by capital formation 4.8 per cent year on year and personal consumption expenditure 1.1 per cent year on year,” it added.
GDP is a measure of the total value of goods and services produced by a particular country within a particular period after deducting the cost of goods and services used up in the process of production.
The Brunei Times