Brunei's National Debt: What's The Status?

Brunei Darussalam's national debt is expected to remain at a similar level in 2029 as it was in 2024, at 0.35 billion US dollars. The country's public debt has been steadily rising since 2021, and in 2022, it stood at 343 million US dollars, constituting 2.06% of its GDP. Brunei's economy is heavily reliant on exports of crude oil and natural gas, which account for over half of its GDP. While the country has made efforts to diversify its economy, oil and gas continue to dominate its economic activity. Brunei's leaders are cautious about integrating further into the world economy, fearing it could undermine internal social cohesion.

Brunei's national debt in 2029

Brunei, officially known as Brunei Darussalam, is a small and wealthy country whose economy is almost entirely supported by exports of crude oil and natural gas. Revenues from the petroleum sector account for over half of the country's GDP. The country's economy is also supplemented by substantial income from overseas investment.

The government of Brunei has shown progress in its basic policy of diversifying the economy away from oil and gas. However, the country's leaders are concerned that increased integration into the world economy will undermine internal social cohesion. Brunei has also taken steps to become a more prominent player in the world economy, such as by serving as chairman of the 2000 APEC (Asia-Pacific Economic Cooperation) forum.

In the 1970s, the Bruneian government invested sharply increasing revenues from petroleum exports and maintained low and constant government spending. This allowed the government to build its foreign reserves and invest them around the world to provide for future generations. However, since 1986, petroleum revenues have decreased, and government spending has increased. The government has been running a budget deficit since 1988, and the country's economy has become more vulnerable to petroleum price fluctuations.

Brunei's gross domestic product (GDP) soared with the petroleum price increases of the 1970s, reaching a peak of $5.7 billion in 1980. However, it declined in the following years, and in 1986, it fell by almost 30%. This drop was caused by a combination of sharply lower petroleum prices in world markets and voluntary production cuts in Brunei. Since then, the GDP has recovered somewhat, with varying growth rates over the years.

The Asian financial crisis in 1997 and 1998, coupled with fluctuations in oil prices, have created uncertainty and instability in Brunei's economy. Additionally, the collapse of Amedeo Development Corporation, the country's largest construction firm, in 1998 caused Brunei to slip into a mild recession.

In 2015, Brunei registered its third year of economic recession, the only ASEAN nation to do so. This was due to declining oil prices and a drop in production due to maintenance and repair work at major oil wells. The country's budget deficit continued in the fiscal years 2015-2016 and 2016-2017.

Brunei's public debt in 2022

Brunei's economy is supported almost entirely by exports of crude oil and natural gas, with revenues from the petroleum sector accounting for over half of its GDP. The country is the third-largest oil producer in Southeast Asia and the ninth-largest producer of liquefied natural gas in the world.

In the 1970s, Brunei invested sharply increasing revenues from petroleum exports while maintaining government spending at a low and constant rate. This allowed the government to build its foreign reserves and invest them globally to provide for future generations. Part of these reserve earnings were also used to finance the government's annual budget deficit. Since 1986, however, petroleum revenues have decreased, and government spending has increased, resulting in a budget deficit since 1988.

The Asian financial crisis in 1997 and 1998, coupled with fluctuations in oil prices, created uncertainty and instability in Brunei's economy. In 2015, Brunei registered its third year of economic recession, the only ASEAN nation to do so at the time. Despite these challenges, the country's public debt forecast for 2029 remains stable compared to 2024, with a projected national debt of 0.35 billion U.S. dollars.

Brunei's debt as a percentage of GDP

Brunei's public debt has been consistently low over the past decade, averaging 2.7% of GDP from 2012 to 2022. In 2022, the public debt was 2.1% of GDP, a decrease from 2.51% in 2021. This is significantly lower than the average for the Asia-Pacific region, which stands at 86.8% of GDP.

The national debt in Brunei is forecast to remain relatively stable, with an estimated 0.35 billion U.S. dollars of debt in 2029, similar to the 2024 level. This stability is notable given the country's history of budget deficits and vulnerability to petroleum price fluctuations.

Brunei's economy is heavily reliant on oil and gas, with revenues from the petroleum sector accounting for over half of its GDP. The country's GDP has experienced fluctuations due to changes in petroleum prices and voluntary production cuts. In 1980, Brunei's GDP reached a peak of $5.7 billion, but it declined in subsequent years, including a sharp fall in 1986 due to low petroleum prices and internal production cuts.

The country has made efforts to diversify its economy away from oil and gas, with agriculture, forestry, fishing, and banking among its non-petroleum industries. However, oil and gas, along with government spending, still account for a significant portion of its economic activity.

Brunei's debt in global debt terms

Brunei's public debt averaged 2.7% of its GDP in the decade leading up to 2022, which is significantly below the average for the Asia-Pacific region of 86.8% of GDP. In 2022, Brunei's public debt was 2.1% of its GDP. In 2024, Brunei's national debt was 0.35 billion US dollars, and it is forecast to remain at a similar level in 2029.

Brunei's economy is almost entirely supported by exports of crude oil and natural gas, with revenues from the petroleum sector accounting for over half of its GDP. The country is the third-largest oil producer in Southeast Asia, averaging about 180,000 barrels per day, and the ninth-largest producer of liquefied natural gas in the world.

In the 1970s, Brunei invested sharply increasing revenues from petroleum exports and maintained government spending at a low and constant rate. This allowed the government to build its foreign reserves and invest them around the world to provide for future generations. Part of the reserve earnings were also used to finance the government's annual budget deficit. Since 1986, however, petroleum revenues have decreased, and government spending has increased. The government has been running a budget deficit since 1988.

The Asian financial crisis in 1997 and 1998, coupled with fluctuations in the price of oil, have created uncertainty and instability in Brunei's economy. In addition, the 1998 collapse of Amedeo Development Corporation, Brunei's largest construction firm, caused the country to slip into a mild recession.

In 2015, Brunei registered its third year of economic recession, the only ASEAN nation to do so. Declining oil prices and a drop in production due to maintenance and repair work at major oil wells dented the country's budget, resulting in a deficit for the fiscal years 2015-16 and 2016-17.

Brunei's per capita debt

Brunei is a small and wealthy country, with a high per capita GDP. Its economy is almost entirely supported by exports of crude oil and natural gas, with revenues from the petroleum sector accounting for over half of its GDP. Brunei is the third-largest oil producer in Southeast Asia and the ninth-largest producer of liquefied natural gas in the world.

In the 1970s, the Bruneian government invested revenues from petroleum exports and maintained low and constant government spending. This allowed the government to build its foreign reserves and invest them globally to provide for future generations. However, since 1986, petroleum revenues have decreased, and government spending has increased. The government has been running a budget deficit since 1988, and the economy has become more vulnerable to petroleum price fluctuations.

Brunei's gross domestic product (GDP) soared with the petroleum price increases of the 1970s, reaching a peak of $5.7 billion in 1980. However, it declined in the following years and saw a sharp drop in 1986 due to lower petroleum prices and voluntary production cuts. The GDP recovered somewhat, growing by 12% in 1987, 1% in 1988, and 9% in 1989.

In recent years, Brunei's economy has faced uncertainty and instability due to the Asian financial crisis and fluctuations in oil prices. The collapse of Amedeo Development Corporation, the country's largest construction firm, also caused Brunei to slip into a mild recession in 1998. In 2015, Brunei registered its third consecutive year of economic recession, the only ASEAN nation to do so.

As of 2022, Brunei's public debt was 325 million euros or 343 million US dollars, an increase of 289 million since 2021. The debt in 2022 reached 2.06% of Brunei's GDP, a decrease from 2.51% in 2021. In terms of per capita debt, Brunei ranked 41st out of 191 countries, with a per capita debt of 757 euros or 798 US dollars in 2022. This is an increase from 692 euros or 819 US dollars in 2021.

Brunei's economy is primarily based on oil and gas and government spending. The country has made limited progress in diversifying its economy, with non-petroleum industries including agriculture, forestry, fishing, and banking.

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