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Brunei is located on the north‑eastern coast of the island of Borneo, facing the South China Sea, and is surrounded by East Malaysia. The economy is resource‑based, and Brunei’s oil and gas sector accounted for almost 60% of the country’s GDP in 2021. GDP grows slowly at 0.5% between 2010 to 2019. Although its fiscal revenue is heavily dependent on oil prices, the country’s large foreign reserves, low external debt and high import cover reduce overall risks. The country’s political stability, low rates of inflation, high standard of living and wealthy population provide an ideal environment for long‑term economic growth.
While Covid‑19 impacted Brunei financially via the drop in global demand for oil and gas, the economy still grew by 1.1% in 2020 thanks to good management of the pandemic and resilient domestic demand. Despite, real GDP declined by 1.6% in 2021, nonetheless, the economy is projected to grow by 1.2% by IMF in 2022, benefiting from rising oil and gas prices.
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