BANDAR SERI BEGAWAN, 1 OCT – The country’s Gross Domestic Product (GDP) at constant prices, for the second quarter (Q2) of 2024, has increased by 6 percent year-on-year.
It is due to an increase in the oil and gas sector by 7.7 percent and the non-oil and gas sector by 4.5 percent, according to the statement of the Department of Economic Planning and Statistics (JPES), Ministry of Finance and Economy in a press release titled Gross Domestic Product Second Quarter 2024, which shared here.
The increase in the oil and gas sector is driven by the production of crude oil, natural gas and liquefied natural gas (LNG). The growth in crude oil and natural gas production is in line with new oil and gas fields, while the increase in LNG production is due to higher gas supplies.
The non-oil and gas sector continues to show encouraging development with an increase in sub-sectors such as the manufacture of petroleum and chemical products by 52.8 percent, air transport by 24.2 percent and trade-
only wholesale and retail by 2.1 percent.
The increase in the petroleum and chemical products manufacturing subsector is mainly due to the increase in the production of petrochemical products, methanol and urea fertilizers.
Growth for the air transport sub-sector is in line with the increase in the number of air passengers and flight frequency, followed by the wholesale and retail trade sub-sector which increased in line with wholesale trade activity, with the increase in motor vehicle sales as one of the contributing factors.
The main contributor to GDP according to economic activity is the industrial sector which contributes as much as 64.7 percent, followed by the service sector as much as 34.1 percent and the agriculture, forestry and fishing sector as much as 1.2 percent.
The country’s total GDP at current prices in Q2 2024 was $5.2 billion compared to $4.8 billion in Q2 2023.
The oil and gas sector has contributed as much as 50.3 percent including oil and gas mining activities and LNG manufacturing and the non-oil and gas sector as much as 49.7 percent including downstream activities such as petroleum and chemical product manufacturing.
According to the expenditure approach, the increase in GDP growth in Q2 2024 is driven by an increase in exports of goods and services by 37.7 percent, household final consumption expenditure by 6 percent, followed by government final consumption expenditure by 4.9 percent.
However, gross capital formation recorded a decrease of 12 percent.
GDP is a measure of the total value of goods and services produced in a given period after deducting the cost of goods and services used in the production process.
The full Q2 2024 GDP report can be found on the JPES website via deps.mofe.gov.bn.
