## Brunei Darussalam: 2023 Article IV Consultation—Press Release; Staff Report; and Statement by the Executive Director for Brunei Darussalam

_IMF Staff Country Reports, October 6, 2023_

## Source details

**Canonical URL:** [Brunei Darussalam: 2023 Article IV Consultation—Press Release; Staff Report; and Statement by the Executive Director for Brunei Darussalam](https://www.imf.org/en/publications/cr/issues/2023/10/06/brunei-darussalam-2023-article-iv-consultation-press-release-staff-report-and-statement-by-539992)

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## Bibliographic details
- Published: October 6, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400255762.002

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### Overview
- The 2023 Article IV Consultation discusses that Brunei has begun to recover from the pandemic, with coronavirus disease 2019 (COVID-19) restrictions lifted and borders reopened in 2022.
- Brunei’s high vaccination rates have allowed for the removal of COVID-19 restrictions and reopening of borders; however, reduced oil and gas (O&G) production have undermined the recovery.
- High fuel prices helped strengthen the fiscal and external positions in 2022.
- Inflation hit a historical high but has recently declined.
- The government is committed to diversifying toward a low-carbon economy.

### Macroeconomic developments and outlook
- Growth in 2023 would remain negative due to extended O&G infrastructure maintenance.
- Non-oil sectors will contribute positively to growth, aiding diversification.
- Inflation is anticipated to moderate further.
- The overall fiscal and external positions are projected to weaken in 2023 and the medium term.

### Fiscal and external positions
- High fuel prices strengthened fiscal and external positions in 2022.
- Projection: fiscal and external positions weaken in 2023 and the medium term.

### Financial sector
- The financial sector remains liquid and well capitalized.

### Structural policies and diversification
- The government is committed to diversifying toward a low-carbon economy.
- Non-oil sector growth is expected to help the diversification agenda.

### Policy recommendations and priorities
- Prioritize human capital development and digitalization.
- Strengthen the regulatory framework for public private partnership.
- Consider more extensive participation in regional trade and economic partnerships.

*IMF Staff Country Report No. 2023/346*

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_Source: https://www.imf.org/en/publications/cr/issues/2023/10/06/brunei-darussalam-2023-article-iv-consultation-press-release-staff-report-and-statement-by-539992_