Brunei's economic performance showed signs of stabilization in the third quarter of 2025, with a slight year-on-year growth of 0.03%, following contractions in the preceding three quarters. The services sector experienced a reduced rate of shrinkage, contracting by 0.5% compared to a 2.4% decline in the second quarter. This improvement was driven by gains in air transport, finance, real estate, and other transport services. Conversely, industrial activity slowed, rising by only 0.3% as opposed to 1.1% previously, hampered by decreased output in oil and gas, as well as reductions in food and beverage manufacturing, other manufacturing activities, and construction. Agricultural growth significantly slowed to 1.8% from 5.0%, impacted by continued declines in the production of fruits, vegetables, various agricultural products, and forestry.
On the expenditure side, fixed investment showed signs of recovery, decreasing by only 0.1% compared to a 9.5% drop previously. Net trade contributed positively to growth, with exports recovering by 4.6% after a significant fall of 15.6%, while imports decreased further by 21.6% compared to a previous decrease of 17.8%. Household consumption remained subdued, declining by 5.0% compared to a 3.2% drop before, and government expenditure fell by 3.0%, marking its first decline in five quarters after a previous increase of 12.0%. On a quarterly basis, the Gross Domestic Product (GDP) rebounded with a 5.4% increase, reversing from a revised 5.6% fall in the second quarter.
