Gross Domestic Product Second Quarter 2021

The Non-oil and gas Sector continues to record positive growth in the second quarter of 2021 with an increase of 0.9 percent. The Gross Domestic Product growth rate declined by 2.1 per cent year-on-year which was due to the decrease in the Oil & Gas Sector by 4.7 per cent. The country's gross domestic product, GDP at current prices was valued at 4.7 billion dollars compared to 4.0 billion in the second quarter of 2020.

According to the Department of Economic Planning and Statistics, Ministry of Finance and Economy Media release, the decline in the Oil & Gas Sector was due to a decrease in the production of crude oil from 118.3 thousand barrels per day in the second quarter of 2020 to 111.1 thousand barrels per day in the second quarter of 2021. The production of Liquefied Natural gas also recorded a decline. The reduction in crude oil and natural gas production was due to shutdown turnaround activities. Meanwhile, the LNG production decline due to limited gas supply and maintenance activities at one of the LNG plant facilities.

Meanwhile growth in the Non-Oil & Gas Sector was mainly due to the increased in the subsector of Wholesale and Retail Trade contributed by an increased in the domestic demand. These was followed by the increase in the Electricity and Water Subsector as well as the Health Services Subsector. In addition, the Agriculture, Forestry & Fishery sector also recorded an increase of 12.9 per cent in the second quarter of 2021.

By expenditure approach, negative GDP growth was mainly due to a decrease in the external demand which exports of goods and services by 10.9 per cent. However, this growth was moderated by the increase in the domestic demand such as Government Final Consumption Expenditure, Gross Capital Formation (particularly private investment) and the Household Final Consumption Expenditure.

Source: Radio Television Brunei