Brunei Economy

June 29, 2010Bruneiby EconomyWatch

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Brunei has a thriving economy that is a mix of domestic and foreign companies, village tradition, regulation enforced by the government and welfare measures. The economy is dominated by oil and natural gas sector that comprise more than 90% of exports. Brunei's per capita GDP is one of the highest in the Asian continent.

Brunei Darussalam is one of the largest oil producing nations in Southeast Asia. The country produces approximately 163,000 barrels per day. Brunei occupies fourth rank as a producer of liquefied natural gas (LNG) globally. Brunei GDP (purchasing power parity) stands at $19.64 billion as in 2007. Inflation rate (consumer prices) is calculated at 0.4% (2007). Unemployment rate is 4% (2006). Industrial growth is 1.8%. The Government of Brunei provides to its citizens free education and subsidized housing.

Exports

Principal exports of Brunei consist of 3 commodities: liquefied natural gas, petroleum products and crude oil. Main importing countries are the ASEAN nations, Japan and United States. Japan itself imports more than 80% of petro products from Brunei. The sole Brunei LNG Plant processes natural gas supplied from offshore gas fields operated and owned by Brunei Shell Petroleum Company Sendrian Berhad.

Agriculture

Agriculture plays a minor role in Brunei economy. Only 1% of country's total rice needs is met within the country. This is produced from a total of 613 hectares of rice fields dispersed throughout the nation. Agriculture in Brunei is subject to supervision by two government departments. The agriculture department is responsible for maintenance, planting, processing and harvesting. The public works department is responsible for clearing agricultural land and providing infrastructure.

Brunei produces approximately 1,000 head of buffaloes and cattle for domestic consumption. This amounts to 6% of total requirements of the nation's beef requirements. Brunei requires approximately 5,000 tonnes of meat per year. This is met by importing live cattle from Australia. The Government of Brunei has its own ranch in Australia to meet these requirements. Local fresh milk production comes to approximately 200,000 liters.