05.07.202503:29:03UTC+00Brunei Extends Economic Downturn in Q1

Brunei's economy contracted by 1.8% year-on-year in the first quarter of 2025, worsening from a 1.3% decline in the previous quarter. This represents the most significant annual decrease since the second quarter of 2023. The services sector experienced a downturn of 0.6%, a notable reversal from a 4.8% growth in the fourth quarter, thus ending a period of three consecutive quarters of expansion. This decline was primarily due to reductions in health, land, and various transport services.

Agricultural production suffered a steep decline of 11.7% after previously increasing by 3.6%, impacted by weaknesses in forestry, fisheries, and a range of crops. Although industrial output continued to decrease, it did so at a slower pace (-2.5% compared to -5.2%), largely due to reductions in other manufacturing sectors, utilities, and LNG and petroleum production.

From an expenditure perspective, fixed investment saw a significant downturn (-13.3% compared to -4.4%), alongside a marked decline in household spending (-3.0% down from 1.0%). In contrast, government spending remained steady at a growth rate of 0.8%. In terms of trade, exports dropped by 10.4%, with imports declining by 11.6%.

On a quarterly basis, GDP fell by 5.1%, overturning a 5.9% increase recorded in the fourth quarter. For the full year of 2024, the economy experienced a growth of 4.2%, a significant rise from the 1.1% expansion noted in 2023.