The Brunei economy is projected to expand 2.8 percent in 2021, led by downstream exports and the manufacturing sector, according to the think tank Centre for Strategic and Policy Studies (CSPS).
On the back of an estimated 0.7 percent growth in 2020, the Brunei economy is expected to improve in 2021 supported by output from Hengyi Industries’ new petrochemical plant on Pulau Muara Besar, CSPS stated in its first annual flagship publication Brunei Economic Outlook 2021.
Record-low oil prices triggered by the COVID-19 pandemic had put a dent in last year’s GDP growth after registering a 13-year high of 3.9 percent economic growth in 2019.
However, the predicted growth rate of 2.8 percent does not take into account global economic uncertainties, the risk of new waves of COVID-19 infections and unanticipated domestic oil and gas supply disruptions.
CSPS said the economic forecast is subject to several factors, including actions taken to contain the COVID-19 pandemic and the rollout of an effective vaccine.
“A weaker than anticipated global recovery also means that energy prices will remain lower for longer, dealing a double whammy to Brunei’s exports and government revenue.