Brunei’s economy grew by 0.3% year-on-year in Q1 2026, a sharp deceleration from the upwardly revised 4.8% expansion in Q4 2025, which had been the strongest increase in five quarters. Industrial activity lost momentum (2.8% vs 8.3% in Q4), reflecting slower output in oil and gas, as well as in LNG and other petroleum and chemical products. At the same time, the services sector contracted further (-3.1% vs -0.4%), dragged down by weaker performance in water and air transport, other transport-related services, finance, and business services. The agriculture sector also declined (-0.6% vs 5.2%), driven by a sharp fall in the production of vegetables, fruits, and other crops, alongside a pronounced slowdown in fisheries.
On the expenditure side, government consumption dropped more steeply (-12.2% vs -1.8%), while private consumption strengthened (9.1% vs 3.7%) and fixed investment returned to growth (6.3% vs -1.4%). Net exports contributed positively to overall growth, as export growth accelerated (9.5% vs 7.1%) and imports contracted at a slower pace (-1.3% vs -3.1%). On a quarterly basis, the economy shrank by 9.0%, reversing the 10.7% expansion recorded in Q4.
