Editing Economy of Brunei (section)

==Macro-economic trend==
{{Unreferenced section|date=January 2022}}
In the 1970s, Brunei invested sharply increasing revenues from petroleum exports and maintained government spending at a low and constant rate. Consequently, the government was able to build its foreign reserves and invest them around the world to help provide for future generations. Part of the reserve earnings were reportedly also used to help 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 disappearance of a revenue surplus has made Brunei's economy more vulnerable to petroleum price fluctuations.

Brunei's gross domestic product (GDP) soared with the petroleum price increases of the 1970s to a peak of $5.7 billion in 1980. It declined slightly in each of the next 5 years, then fell by almost 30% in 1986.

This drop was caused by a combination of sharply lower petroleum prices in world markets and voluntary production cuts in Brunei. The GDP recovered somewhat since 1986, growing by 12% in 1987, 1% in 1988, and 9% in 1989. In recent years, GDP growth was 3.5% in 1996, 4.0% in 1997, 1.0% in 1998, and an estimated 2.5% in 1999. However, the 1999 GDP was still only about $4.5 billion, well below the 1980 peak.

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 whose projects helped fuel the domestic economy, caused the country to slip into a mild recession.

This is a chart of trend of gross domestic product of Brunei Darussalam at market prices estimated<ref>{{cite web |url=http://www.imf.org/external/pubs/ft/weo/2006/01/data/dbcselm.cfm?G=2001 |title=International Monetary Fund |url-status=dead |archive-url=https://web.archive.org/web/20100611172746/http://www.imf.org/external/pubs/ft/weo/2006/01/data/dbcselm.cfm?G=2001 |archive-date=2010-06-11 }}</ref> by the [[International Monetary Fund]] with figures in millions of [[Bruneian dollar]]s.
{| class="wikitable"
|-
! Year || Gross domestic product || US dollar exchange || Inflation index (2000=100)
|-
| 1985 || 7,777 || 2.20 Bruneian dollars || 76
|-
| 1990 || 6,509 || 1.81 Bruneian dollars || 82
|-
| 1995 || 7,394 || 1.41 Bruneian dollars || 95
|-
| 2000 || 7,441 || 1.72 Bruneian dollars || 100
|-
| 2005 || 10,401 || 1.62 Bruneian dollars || 100
|}
For purchasing power parity comparisons, the US dollar is exchanged at 1.52 Bruneian dollars only. Mean wages were $25.38 per [[man-hour]] in 2009.

The government regulates the immigration of foreign labor out of concern it might disrupt Brunei's society. Work permits for foreigners are issued only for short periods and must be continually renewed. Despite these restrictions, foreigners make up a significant portion of the work force. The government reported a total work force of 122,800 in 1999, with an unemployment rate of 5.5%.

Oil and natural gas account for almost all exports. Since only a few products other than petroleum are produced locally, a wide variety of items must be imported. Brunei statistics show Singapore as the largest point of origin of imports, accounting for 25% in 1997. However, this figure includes some transshipments, since most of Brunei's imports transit Singapore. Japan and Malaysia were the second-largest suppliers. As in many other countries, Japanese products dominate local markets for motor vehicles, construction equipment, electronic goods, and household appliances. The United States was the third-largest supplier of imports to Brunei in 1998.

Brunei's substantial foreign reserves are managed by the Brunei Investment Agency (BIA), an arm of the [[Ministry of Finance and Economy (Brunei)|Ministry of Finance and Economy]]. BIA's guiding principle is to increase the real value of Brunei's foreign reserves while pursuing a diverse investment strategy, with holdings in the United States, Japan, western Europe, and the Association of South East Asian Nations (ASEAN) countries.

The Brunei Government actively encourages more foreign investment. New enterprises that meet certain criteria can receive pioneer status, exempting profits from income tax for up to 5 years, depending on the amount of capital invested. The normal corporate income tax rate is 30%. There is no personal income tax or capital gains tax.

One of the government's most important priorities is to encourage the development of Brunei Malays as leaders of industry and commerce. There are no specific restrictions of foreign equity ownership, but local participation, both shared capital and management, is encouraged. Such participation helps when tendering for contracts with the government or [[Brunei Shell Petroleum]].

Companies in Brunei must either be incorporated locally or registered as a branch of a foreign company and must be registered with the Registrar of Companies. Public companies must have a minimum of seven shareholders. Private companies must have a minimum of two but not more than 50 shareholders. At least half of the directors in a company must be residents of Brunei.

Between 1981<ref name=ABC2013>{{cite news |title=Cattle, goats and buffalo shipped out of Darwin for Brunei |first=Matt |last=Brann |date=23 September 2013 |publisher=[[Australian Broadcasting Corporation]] |url=https://www.abc.net.au/news/rural/2013-09-24/live-exports-to-brunei/4977184 |access-date=14 April 2022}}</ref> and 2013 the Sultan owned cattle stations in [[Australia]] that supplied most of the country's beef.<ref>{{cite web |url=https://2009-2017.state.gov/r/pa/ei/bgn/2700.htm |title=U.S. Relations With Brunei |publisher=U.S. Department of State |date=19 August 2016}}</ref><ref>{{cite web |url=http://www.global-briefing.org/2012/07/diversifying-is-hard-to-do/ |title=Brunei Darussalam: Diversifying is hard to do |author=Kieran Cooke |website=global-briefing.org |access-date=8 December 2016}}</ref> In 1984 it was reported that at {{convert|2,262|sqmi|km2}}, the total area of the stations was larger than Brunei itself.<ref>{{cite news |title=WORLD'S NEWEST NATION; Brunei leaves Britain's nest |date=11 January 1984 |first=Paul |last=Quinn-Judge |url=https://www.csmonitor.com/1984/0111/011113.html |access-date=14 April 2022}}</ref> Some of the stations were sold in 2006<ref name=ABC2013/> and 2014.<ref>{{cite news |title=Indonesian company buys NT's Willeroo Station from the Sultan of Brunei |first=Matt |last=Brann |date=13 April 2014 |publisher=Australian Broadcasting Corporation |url=https://www.abc.net.au/news/rural/2014-04-14/willeroo-station-northern-territory-sold-to-indonesian-company/5387712 |access-date=14 April 2022}}</ref>  As of 2019, the Sultan still owned the Opium Creek station.<ref>{{cite news |title=More Brunei protests planned as shell investments questioned |first=Destiny |last=Rogers |date=28 April 2019 |publisher=qnews.com.au |url=https://qnews.com.au/brunei-protests-planned-as-shell-investments-questioned/ |access-date=14 April 2022}}</ref>
Eggs and chickens are largely produced locally, but most of Brunei's other food needs must be imported. Agriculture and fisheries are among the industrial sectors that the government has selected for highest priority in its efforts to diversify the economy.

The following table shows the main economic indicators in 1983–2021 (with IMF staff estimates in 2022–2027). Inflation below 5% is in green.<ref>{{cite web | url=https://www.imf.org/en/Publications/WEO/weo-database/2022/October/weo-report?c=516,&s=NGDP_RPCH,NGDPD,PPPGDP,NGDPDPC,PPPPC,PCPIPCH,LUR,GGXWDG_NGDP,&sy=1980&ey=2027&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1 | title=Report for Selected Countries and Subjects }}</ref>
{| class="wikitable" style="text-align:center;"
!Year
!GDP
<small>(in Bil. US$PPP)</small>
!GDP per capita
<small>(in US$ PPP)</small>
!GDP
<small>(in Bil. US$nominal)</small>
!GDP per capita
<small>(in US$ nominal)</small>
!GDP growth
<small>(real)</small>
!Inflation rate
<small>(in Percent)</small>
!Unemployment
<small>(in Percent)</small>
!Government debt
<small>(in % of GDP)</small>
|-
|1982
|n/a
|n/a
|n/a
|n/a
|n/a
|{{Increase}}0.0%
|n/a
|n/a
|-
|1983
|n/a
|n/a
|n/a
|n/a
|n/a
|{{Increase}}1.2%
|n/a
|n/a
|-
|1984
|n/a
|n/a
|n/a
|n/a
|n/a
|{{Increase}}3.1%
|n/a
|n/a
|-
|1985
|12.3
|55,627.7
|4.8
|21,606.1
|n/a
|{{Increase}}2.1%
|n/a
|0.0%
|-
|1986
|{{Steady}}12.3
|{{Decrease}}54,133.4
|{{Decrease}}3.3
|{{Decrease}}14,434.4
|{{Decrease}}-2.7%
|{{Increase}}1.8%
|n/a
|{{Steady}}0.0%
|-
|1987
|{{Increase}}12.8
|{{Increase}}54,771.6
|{{Increase}}3.8
|{{Increase}}16,435.8
|{{Increase}}2.0%
|{{Increase}}1.2%
|n/a
|{{Steady}}0.0%
|-
|1988
|{{Increase}}13.4
|{{Increase}}55,520.5
|{{Decrease}}3.7
|{{Decrease}}15,165.5
|{{Increase}}1.1%
|{{Increase}}1.2%
|n/a
|{{Steady}}0.0%
|-
|1989
|{{Increase}}13.8
|{{Increase}}55,942.4
|{{Increase}}4.1
|{{Increase}}16,557.0
|{{Decrease}}-1.1%
|{{Increase}}1.3%
|n/a
|{{Steady}}0.0%
|-
|1990
|{{Increase}}14.5
|{{Increase}}57,024.3
|{{Increase}}4.9
|{{Increase}}19,281.9
|{{Increase}}1.1%
|{{Increase}}2.1%
|n/a
|{{Steady}}0.0%
|-
|1991
|{{Increase}}15.4
|{{Increase}}59,154.3
|{{Increase}}5.2
|{{Increase}}20,018.8
|{{Increase}}3.1%
|{{Increase}}1.6%
|n/a
|{{Steady}}0.0%
|-
|1992
|{{Increase}}16.5
|{{Increase}}61,787.9
|{{Increase}}5.5
|{{Increase}}20,523.3
|{{Increase}}4.8%
|{{Increase}}1.3%
|n/a
|{{Steady}}0.0%
|-
|1993
|{{Increase}}17.0
|{{Increase}}61,983.5
|{{Steady}}5.5
|{{Decrease}}20,275.6
|{{Increase}}0.3%
|{{Increase}}4.3%
|n/a
|{{Steady}}0.0%
|-
|1994
|{{Increase}}17.9
|{{Increase}}63,533.3
|{{Increase}}6.0
|{{Increase}}21,188.9
|{{Increase}}3.1%
|{{Increase}}2.5%
|n/a
|{{Steady}}0.0%
|-
|1995
|{{Increase}}19.1
|{{Increase}}66,308.1
|{{Increase}}7.1
|{{Increase}}24,707.3
|{{Increase}}4.5%
|{{IncreaseNegative}}6.0%
|n/a
|{{Steady}}0.0%
|-
|1996
|{{Increase}}20.0
|{{Increase}}67,767.4
|{{Steady}}7.1
|{{Decrease}}24,275.8
|{{Increase}}2.9%
|{{Increase}}2.0%
|n/a
|{{Steady}}0.0%
|-
|1997
|{{Steady}}20.0
|{{Decrease}}66,300.8
|{{Decrease}}7.0
|{{Decrease}}23,167.9
|{{Decrease}}-1.5%
|{{Increase}}1.7%
|n/a
|{{Steady}}0.0%
|-
|1998
|{{Increase}}20.1
|{{Decrease}}64,992.3
|{{Decrease}}5.3
|{{Decrease}}17,164.1
|{{Decrease}}-0.6%
|{{Increase}}-0.4%
|n/a
|{{Steady}}0.0%
|-
|1999
|{{Increase}}21.0
|{{Increase}}66,333.7
|{{Increase}}5.7
|{{Increase}}18,099.1
|{{Increase}}3.1%
|{{Increase}}-0.4%
|n/a
|{{Steady}}0.0%
|-
|2000
|{{Increase}}22.1
|{{Increase}}68,072.5
|{{Increase}}6.7
|{{Increase}}20,473.3
|{{Increase}}2.8%
|{{Increase}}1.6%
|n/a
|{{Steady}}0.0%
|-
|2001
|{{Increase}}23.2
|{{Increase}}69,788.5
|{{Decrease}}6.2
|{{Decrease}}18,646.0
|{{Increase}}2.7%
|{{Increase}}0.6%
|n/a
|{{Steady}}0.0%
|-
|2002
|{{Increase}}24.5
|{{Increase}}72,049.2
|{{Increase}}6.5
|{{Increase}}19,037.8
|{{Increase}}3.9%
|{{Increase}}-2.3%
|n/a
|{{Steady}}0.0%
|-
|2003
|{{Increase}}25.7
|{{Increase}}74,229.5
|{{Increase}}7.3
|{{Increase}}20,975.5
|{{Increase}}2.9%
|{{Increase}}0.3%
|n/a
|{{Steady}}0.0%
|-
|2004
|{{Increase}}26.5
|{{Increase}}75,323.6
|{{Increase}}8.7
|{{Increase}}24,759.5
|{{Increase}}0.5%
|{{Increase}}0.8%
|n/a
|{{Steady}}0.0%
|-
|2005
|{{Increase}}27.5
|{{Increase}}76,638.4
|{{Increase}}10.6
|{{Increase}}29,459.7
|{{Increase}}0.4%
|{{Increase}}1.2%
|n/a
|{{Steady}}0.0%
|-
|2006
|{{Increase}}29.6
|{{Increase}}81,119.6
|{{Increase}}12.7
|{{Increase}}34,869.2
|{{Increase}}4.4%
|{{Increase}}0.2%
|n/a
|{{IncreaseNegative}}0.6%
|-
|2007
|{{Increase}}30.4
|{{Increase}}82,199.5
|{{Increase}}13.6
|{{Increase}}36,678.3
|{{Increase}}0.2%
|{{Increase}}1.0%
|n/a
|{{IncreaseNegative}}0.7%
|-
|2008
|{{Steady}}30.4
|{{Decrease}}81,056.2
|{{Increase}}15.9
|{{Increase}}42,529.7
|{{Decrease}}-1.9%
|{{Increase}}2.1%
|n/a
|{{IncreaseNegative}}0.9%
|-
|2009
|{{Decrease}}30.1
|{{Decrease}}79,061.0
|{{Decrease}}11.9
|{{Decrease}}31,287.3
|{{Decrease}}-1.8%
|{{Increase}}1.0%
|n/a
|{{IncreaseNegative}}1.1%
|-
|2010
|{{Increase}}31.2
|{{Increase}}80,668.9
|{{Increase}}13.7
|{{Increase}}35,437.3
|{{Increase}}2.6%
|{{Increase}}0.4%
|n/a
|{{Steady}}1.1%
|-
|2011
|{{Increase}}33.0
|{{Increase}}84,001.0
|{{Increase}}18.5
|{{Increase}}47,092.3
|{{Increase}}3.7%
|{{Increase}}0.1%
|9.3%
|{{IncreaseNegative}}2.1%
|-
|2012
|{{Increase}}35.2
|{{Increase}}88,311.7
|{{Increase}}19.0
|{{Increase}}47,776.4
|{{Increase}}0.9%
|{{Increase}}0.1%
|{{DecreasePositive}}8.5%
|{{Steady}}2.1%
|-
|2013
|{{Decrease}}33.9
|{{Decrease}}84,019.1
|{{Decrease}}18.1
|{{Decrease}}44,865.2
|{{Decrease}}-2.1%
|{{Increase}}0.4%
|{{DecreasePositive}}7.7%
|{{IncreaseNegative}}2.2%
|-
|2014
|{{Decrease}}33.3
|{{Decrease}}81,806.0
|{{Decrease}}17.1
|{{Decrease}}41,947.5
|{{Decrease}}-2.5%
|{{Increase}}-0.2%
|{{DecreasePositive}}6.9%
|{{IncreaseNegative}}3.2%
|-
|2015
|{{Decrease}}25.9
|{{Decrease}}62,921.9
|{{Decrease}}12.9
|{{Decrease}}31,353.8
|{{Decrease}}-0.4%
|{{Increase}}-0.5%
|{{IncreaseNegative}}7.7%
|{{DecreasePositive}}3.0%
|-
|2016
|{{Decrease}}23.6
|{{Decrease}}56,638.3
|{{Decrease}}11.4
|{{Decrease}}27,322.0
|{{Decrease}}-2.5%
|{{Increase}}-0.3%
|{{IncreaseNegative}}8.5%
|{{Steady}}3.0%
|-
|2017
|{{Increase}}25.9
|{{Increase}}60,281.7
|{{Increase}}12.1
|{{Increase}}28,237.9
|{{Increase}}1.3%
|{{Increase}}-1.3%
|{{IncreaseNegative}}9.3%
|{{DecreasePositive}}2.8%
|-
|2018
|{{Increase}}26.5
|{{Decrease}}59,953.3
|{{Increase}}13.6
|{{Increase}}30,666.6
|{{Increase}}0.1%
|{{Increase}}1.0%
|{{DecreasePositive}}8.7%
|{{DecreasePositive}}2.6%
|-
|2019
|{{Increase}}28.0
|{{Increase}}61,028.0
|{{Decrease}}13.5
|{{Decrease}}29,312.8
|{{Increase}}3.9%
|{{Increase}}-0.4%
|{{DecreasePositive}}6.8%
|{{Steady}}2.6%
|-
|2020
|{{Increase}}28.7
|{{Increase}}63,276.0
|{{Decrease}}12.0
|{{Decrease}}26,467.8
|{{Increase}}1.1%
|{{Increase}}1.9%
|{{Steady}}6.8%
|{{IncreaseNegative}}2.9%
|-
|2021
|{{Increase}}29.4
|{{Increase}}68,416.7
|{{Increase}}14.0
|{{Increase}}32,573.3
|{{Decrease}}-1.6%
|{{Increase}}1.7%
|{{Steady}}6.8%
|{{DecreasePositive}}2.5%
|-
|2022
|{{Increase}}31.9
|{{Increase}}74,196.0
|{{Increase}}18.5
|{{Increase}}42,939.4
|{{Increase}}1.2%
|{{Increase}}2.5%
|{{Steady}}6.8%
|{{DecreasePositive}}1.9%
|-
|2023
|{{Increase}}34.1
|{{Increase}}79,408.5
|{{Decrease}}17.9
|{{Decrease}}41,713.0
|{{Increase}}3.3%
|{{Increase}}2.0%
|{{Steady}}6.8%
|{{Steady}}1.9%
|-
|2024
|{{Increase}}36.0
|{{Increase}}83,693.3
|{{Increase}}18.1
|{{Increase}}42,046.7
|{{Increase}}3.2%
|{{Increase}}1.5%
|{{Steady}}6.8%
|{{Steady}}1.9%
|-
|2025
|{{Increase}}37.8
|{{Increase}}88,002.0
|{{Increase}}18.4
|{{Increase}}42,711.8
|{{Increase}}3.2%
|{{Increase}}1.0%
|{{Steady}}6.8%
|{{Steady}}1.9%
|-
|2026
|{{Increase}}39.5
|{{Increase}}91,921.3
|{{Increase}}18.7
|{{Increase}}43,499.7
|{{Increase}}2.5%
|{{Increase}}1.0%
|{{Steady}}6.8%
|{{Steady}}1.9%
|-
|2027
|{{Increase}}41.7
|{{Increase}}96,927.8
|{{Increase}}19.3
|{{Increase}}44,913.6
|{{Increase}}3.4%
|{{Increase}}1.0%
|{{Steady}}6.8%
|{{DecreasePositive}}1.8%
|}