Country Report Brunei March 2011

Foreign trade and payments: Trade with China reaches an all-time high

Brunei's published statistics cover external trade up to 2009. Data are therefore not available for 2010, but there is little likelihood that there will have been a change in the general pattern of Brunei's external trade-namely, the fact that exports consist almost entirely of oil and gas and are largely bound for Japan and South Korea under existing supply contracts, while the sultanate is dependent on imports for a large range of goods, including foodstuffs, cars and other manufactured goods that are sourced mainly from the South-east Asia region. The country's large surplus on goods trade is likely to persist for many years to come.

Brunei recorded a trade surplus of Br$6.9bn (US$4.6bn) in 2009, as the country's external trade remained underpinned by the oil and gas industry. However, this outturn was far below the Br$11.3bn surplus that had been recorded in the previous year, partly reflecting the fall in global prices for oil and gas in 2009. Government statistics show that Brunei's imports fell by just 4.3% in value in 2009, whereas exports were down by 30.2%. The value of crude oil exports fell by 37.4% in 2009, to Br$5bn, and exports of LNG were down by 24.3%, to Br$5.1bn. Brunei's garment exports-the only significant category of exports in 2009 outside the energy sector-plummeted by 53%, to Br$57m (US$39m).

Official Chinese figures show that total trade between Brunei and China reached US$1bn in 2010, an increase of 143% year on year. Brunei runs a large surplus on trade with China, with exports of hydrocarbons the main driving force behind rising trade. It is likely that China will play a larger role in Brunei's energy exports in the future. Nevertheless, trade with China will continue to be dwarfed by the more important trade with Japan and South Korea.

© 2011 The Economist lntelligence Unit Ltd. All rights reserved
Whilst every effort has been taken to verify the accuracy of this information, The Economist lntelligence Unit Ltd. cannot accept any responsibility or liability for reliance by any person on this information
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