Brunei’s economic growth is expected to reach 4.1% in 2022


BANDAR SERI BEGAWAN, Jan 29 (Borneo Bulletin/ANN): The Asean+3 Macroeconomic Research Office (AMRO) expects the Asean+3 region to remain resilient in 2022, despite new challenges of the Covid-19 pandemic and the global economy.

AMRO maintained a positive outlook on the Asean+3 economies for 2022, with regional gross domestic product (GDP) growth of 4.9% and inflation remaining relatively low at 2.9% for the year.

AMRO’s findings are part of its latest update on its flagship report, Asean+3 Regional Economic Outlook (AREO).

Brunei’s economic growth is expected to be 4.1% in 2022 and 0.2% in 2021.

In their October 2021 forecast, the expected economic growth was 2.1% in 2021 and 3.2% in 2022.

On the Asean economy, AMRO pointed out that the emergence of the Omicron variant towards the end of 2021 has brought new uncertainties and delayed progress in economic reopening.

High vaccination coverage mitigated the risk of nationwide lockdowns, as was the case at the start of the pandemic.

“The Asean+3 region has ample room to navigate these new challenges and stay on the road to recovery,” AMRO Chief Economist Dr. Hoe Ee Khor said.

“A resurgence in infections continues to be the main downside risk, amplified by continued global supply chain disruptions and mounting global price pressures,” Dr Khor said, adding that, “So that rising global inflation is likely to prompt major advanced economies to roll back extraordinary monetary support sooner or stronger than expected, ripple effects for the region are likely to be limited due to greater resilience.

According to its Economic Outlook Report released last week based on AMRO’s virtual annual consultation visit to Brunei in October 2021, the Sultanate’s economy is expected to rebound moderately at 2.1% in 2021, benefiting from the improvement in global oil prices and demand due to the strong global recovery.

Supported by higher oil revenues, the country’s tightening of containment measures and extension of support measures should help cushion the economic impact of the current wave of Covid-19 infections.

Among ASEAN economies, Vietnam is expected to grow the fastest this year at 7.5%, followed by the Philippines, Cambodia and Indonesia at 5.2%. AMRO’s findings are part of the Asean+3 Regional Economic Outlook, which will be released in April. – Borneo Bulletin/ANN


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