The ASEAN-10

Summary

Brunei Darussalam

The Brunei economy has been recording positive growth rates for the last few years. The labour force participation rate has also been increasing from 69.9 per cent in 2004 to 71.7 per cent in 2006. Unemployment fell to 4 per cent as at end 2006 compared with 4.3 per cent in 2005. Brunei's literacy rates are among the highest in ASEAN. Literacy rates have increased from 80.3 per cent in 1981 to 84.7 per cent in 1991 and 93.7 per cent in 2001.

Real GDP was 5.1 per cent in 2006 and estimated to be around 1.9 per cent in 2007, after hovering about 0.5 per cent in 2004 and 2005. The production of oil (barrels/day) has increased from 201,000 barrels in 2005 to 219,000 barrels in 2006. Gas production has increased from

BRUNEI DARUSSALAM

• The outlook remains positive for Brunei with growth expected to hover above the 2 per cent mark.

• The economy continues to be dependent mainly on buoyancy of the oil market but there are signs of diversification with an improvement of contribution to GDP by the services sector.

• Fish processing has been one of the fastest growing sectors in recent years.

1,185 MMscf/day in 2005 to 1,239 MMscf/day in 2006. Production levels of oil and gas are expected to be more or less the same during the forecast period of 2008 and 2009, with only marginal increases expected. Inflation has also been under control, expected to average around 1.2 per cent in the forecast period.

Based on the IMF World Economic Outlook Database in October 2007, and the author's own estimates, the growth forecast in Brunei Darussalam will range between 2 to 2.5 per cent for 2008 and 2009. The positives continue to outweigh the negative although factors outside the countries may act as an unexpected dampener to growth.