18/7/2023 (BANDAR SERI BEGAWAN) Brunei’s trade balance has dropped by 39.1% in March 2023, according to the latest International Merchandise Trade Statistics released by the Ministry of Finance and Economy. The country recorded a trade balance of 526.2 million Brunei dollars (398.2 million U.S. dollars) for March 2023 compared to the same period last year. This decrease was attributed to a drop in both export and import values.
Brunei’s exports in March 2023 decreased by 39.7% yearly to 1,004.2 million Brunei dollars, with the main contributing factors being the drop in mineral fuels exports and chemicals. Meanwhile, imports also decreased from 800.2 million Brunei dollars in March 2022 to 478.0 million Brunei dollars in March 2023.
According to the report, Singapore was the largest export partner for Brunei, accounting for 18.8% of exports in March 2023, followed by Japan (18.7%), Australia (12.1%), and Thailand (10.6%). Meanwhile, the biggest import partner was Belgium, accounting for 33.5% of imports, followed by Malaysia (18.8%), Singapore (10.8%), and China (8.9%).
The decrease in trade balance for Brunei is a significant concern for the country’s economy. The COVID-19 pandemic has had a significant impact on Brunei’s economy, with the government taking several measures to mitigate the impact of the pandemic. These measures include providing financial assistance to affected individuals and businesses and implementing various stimulus packages.
Despite the challenges posed by the pandemic, Brunei remains committed to its diversification strategy to reduce its dependence on the oil and gas sector. The country is actively seeking to develop other sectors, including tourism, agriculture, and manufacturing. However, it remains to be seen whether these efforts will be enough to mitigate the impact of the pandemic on Brunei’s economy.
The drop in Brunei’s trade balance highlights the need for the country to continue to diversify its economy and reduce its reliance on the oil and gas sector. The government must take further steps to support affected businesses and individuals and implement measures to stimulate economic growth in other sectors.
