Brunei Darussalam Economy

Brunei Darussalam’s economy closed out 2011 in good health, with GDP rising, inflation under control and plans to build on existing strengths and develop new opportunities. However, concerns remain over the slowing global economic growth and how this may impact the country.

Looking to build on its recent good showing in the World Bank’s Ease of Doing Business (EODB) survey, where it made solid gains in a number of categories and improved its overall ranking, Brunei Darussalam is now looking to further enhance its business climate and attract increasing levels of foreign direct investment. Yet, it still has some way to go before it achieves its goal of being included in the upper percentile of the World Bank ratings.

Brunei Darussalam’s economy has maintained its competitive edge over the past year, according to a recent report, putting in a solid performance in difficult times as the world struggles to rebound from recession. However, the study also identified a number of key areas where the Sultanate needs to step up if it is to further improve its rankings.

Brunei Darussalam’s economy has been given a clean bill of health by the International Monetary Fund (IMF), with the agency praising the prudent economic management exercised by local authorities, as well as the efforts to reform and liberalise the financial sector and reduce the dependence on oil and gas as the nation’s main revenue earners. The Fund and other analysts have also said more still needs to be done to foster private sector development and improve the overall business environment.

For Brunei Darussalam 2010 was a year of consolidation and building for the future. The economy has emerged from two years of negative growth amidst the fallout from the global financial crisis, and there are projections of better things to come in 2011.

The first successes of the recently established free trade agreement (FTA) between Brunei and India have become evident, with Indian experts identifying the Sultanate’s construction sector as a promising area for trade expansion. The sector offers Indian firms a chance to tap into one of the Bruneian economy’s major growth drivers, with a swathe of major construction projects either under way or on the drawing board.