Policy Priorities to Safeguard Longer-Term Fiscal Sustainability in Brunei
In the recent decade however, Brunei’s hydrocarbon-based economic model has come under increasing pressure, reflecting major disruptions in offshore oil and gas production.
In the recent decade however, Brunei’s hydrocarbon-based economic model has come under increasing pressure, reflecting major disruptions in offshore oil and gas production.
The rapid shift toward digital solutions and innovation highlights the growing importance of the information and communication technology (ICT) sector in Brunei.
Under the Wawasan Brunei 2035, tourism has been identified as one of the five priority sectors for economic diversification.
Watch the highlights of AMRO's 2023 Annual Consultation Report on Brunei Darussalam.
Brunei's high dependence on the O&G sector has encountered significant hurdles in recent years amid the increasingly volatile global energy prices and challenges in domestic production.
Brunei’s economy expanded by 1.4 percent in 2023, and growth is expected to strengthen to 2.7 percent this year.
Brunei’s economy is expected to strengthen further this year after a strong recovery in 2023, mainly supported by robust activities in the non-oil & gas sector.
The ASEAN region is expected to benefit from a combination of these favorable factors, with growth in 2024 and 2025 forecast at 4.8 and 4.9 percent, respectively while growth in the Plus-3 region is expected to remain robust at 4.3 and 4.1 percent, respectively.
With excess liquidity in the Philippine banking system, the BSP must borrow or ‘withdraw’ liquidity from the market to prevent market rates from falling below the policy rate.
Economic stagnation raises questions about Brunei’s future prosperity. The hydrocarbon-based economic model, which has served the country well for decades, is ripe for change.