IMF Projects 2.4% Economic Growth for Brunei in 2024, Driven by Oil and Gas Sector

The International Monetary Fund (IMF) has forecasted Brunei Darussalam's economic expansion at 2.4% in 2024, with the oil and gas sector and downstream segments anticipated to be the most significant contributors to GDP growth. Meanwhile, the non-oil and gas sector is expected to maintain its modest growth.

This forecast is consistent with projections from the Asian Development Bank (ADB) and the ASEAN+3 Macroeconomic Research Office (AMRO), further supporting the outlook for Brunei's economic growth in the coming year.

In its report, the IMF also noted that the global economy is predicted to maintain a growth rate of 3.2% in 2024 and 2025, with a slight acceleration in advanced economies counterbalanced by a modest slowdown in emerging markets and developing economies. Global inflation is projected to steadily decrease from 6.8% in 2023 to 4.5% in 2025.

Why this matters: Brunei's forecasted economic growth in 2024, propelled by the oil and gas sector, emphasizes the country's ongoing dependence on its hydrocarbon resources. As the global economy navigates challenges and inflationary pressures, Brunei's economic performance will be closely monitored by investors and policymakers in the region.

The IMF's projections for Brunei's economy in 2024 highlight the importance of the oil and gas sector in driving the country's growth. As Brunei continues to diversify its economy and encourage the expansion of non-oil and gas sectors, the modest growth in these areas is anticipated to complement the strong performance of the hydrocarbon industry.

Key Takeaways

• IMF forecasts Brunei's 2024 economic growth at 2.4%, driven by oil/gas sector.
• Brunei's economic outlook aligns with projections from ADB and AMRO for 2024.
• Global economy projected to grow 3.2% in 2024-2025, with inflation declining to 4.5%.
• Brunei's economic performance closely monitored due to dependence on hydrocarbon resources.
• Non-oil/gas sectors expected to see modest growth, complementing hydrocarbon industry.