5352.0 - International Investment Position, Australia: Supplementary Statistics, 2006  
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 31/07/2007  Reissue
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ANALYSIS AND COMMENTS


INTERNATIONAL INVESTMENT POSITION

Australia’s net international investment position at 31 December 2006 was $604.4 billion, an increase of $73.5 billion on the previous year.

Level of foreign investment in Australia

The level of foreign investment in Australia increased by $225.0 billion to reach $1,440.0 billion at 31 December 2006. Portfolio investment accounted for $902.8 billion (63%), direct investment for $315.4 billion (22%), other investment liabilities for $166.2 billion (12%) and financial derivatives for $55.6 billion (4%). Of the portfolio investment liabilities, debt securities accounted for $594.4 billion (66%) and equity securities for $308.4 billion (34%).

The leading investor countries at 31 December 2006 were:

  • United States of America ($362.8 billion or 25%)
  • United Kingdom ($352.7 billion or 24%)
  • Japan ($51.0 billion or 4%)
  • Hong Kong (SAR of China) ($38.5 billion or 3%)
  • Switzerland ($35.3 billion or 2%)
  • New Zealand ($32.4 billion or 2%)
  • Singapore ($26.9 billion or 2%).
In addition, the level of borrowing raised on international capital markets (e.g. Eurobonds) was $159.2 billion or 11%.

The following graph illustrates the percentage share, by leading countries, of the total level of foreign investment in Australia at 31 December 2006.

Graph: Foreign Investment in Australia, Levels, 31 Dec 2006



Level of Australian investment abroad

The level of Australian investment abroad reached $835.6 billion at 31 December 2006, an increase of $151.4 billion on the previous year. Portfolio investment abroad accounted for $315.6 billion (38%), direct investment for $287.5 billion (34%), other investment for $110.9 billion (13%), reserve assets for $69.6 billion (8%) and financial derivatives for $52.0 billion (6%). Equity has been the main form of Australian investment abroad during the past decade. At $483.8 billion, equity represented 58% of the total level of investment at 31 December 2006.


The leading destination countries as at 31 December 2006 were:
  • United States of America ($320.8 billion or 38%)
  • United Kingdom ($133.3 billion or 16%)
  • New Zealand ($65.3 billion or 8%)
  • Japan ($39.8 billion or 5%)
  • Netherlands ($31.2 billion or 4%).
The following graph illustrates the percentage share, by leading countries, of the total level of Australian investment abroad at 31 December 2006.

Graph: Australian Investment Abroad, Levels, 31 Dec 2006



FINANCIAL ACCOUNT TRANSACTIONS

The balance on financial account for the year ended 31 December 2006 recorded a net inflow (surplus) of $53.8 billion. This result is up $0.9 billion on the net inflow of $52.9 billion recorded for the previous year.


Foreign investment in Australia - Transactions

Foreign investment in Australia recorded a net inflow of $160.5 billion for the year ended 31 December 2006, an increase of $131.3 billion on the net inflow of $29.2 billion for the previous year.

The leading investor countries were:
  • United Kingdom ($21.8 billion or 14%)
  • Switzerland ($10.3 billion or 6%)
  • Hong Kong (SAR of China) ($7.1 billion or 4%)
  • New Zealand ($6.1 billion or 4%).

Countries from which the largest amounts of foreign investment were withdrawn in 2006 were:
  • Canada ($0.8 billion or -0.5%)
  • Republic of Ireland ($0.7 billion or -0.4%).

In addition, borrowing raised on international capital markets (e.g. Eurobonds) were $27.5 billion or 17%.

The following graph illustrates the percentage share, by leading countries, of total financial transactions for foreign investment in Australian during the year ended 31 December 2006.

Graph: Foreign Investment in Australia, Transactions, 2006



Australian investment abroad - Transactions

Australian investment abroad recorded a net outflow of $106.6 billion for the year ended 31 December 2006, a turnaround of $130.3 billion on the net inflow of $23.7 billion for the previous year.

The leading destination countries were:
  • United Kingdom ($20.2 billion or 19%)
  • United States of America ($18.7 billion or 18%)
  • Canada ($10.5 billion or 10%)
  • Japan ($9.6 billion or 9%)
  • New Zealand ($6.1 billion or 6%).

The country from which the largest amount of Australian investment was withdrawn in 2006 was:
  • Luxembourg ($1.0 billion or -1%).


The following graph illustrates the percentage share, by leading countries, of total financial transactions for Australian investment abroad during the year ended 31 December 2006.

Graph: Australian Investment Abroad, Transactions, 2006

INCOME
Income debits totalled $68.6 billion for the year ended 31 December 2006. This result is up $12.9 billion on the income debits in the previous year. The main countries to which income accrued for the year ended 31 December 2006 were:
  • United States of America ($15.5 billion or 23%)
  • United Kingdom ($11.3 billion or 16%)
  • Japan ($5.4 billion or 8%)
  • Switzerland ($4.0 billion or 6%)
  • Netherlands ($2.1 billion or 3%).

Income credits totalled $28.0 billion for the year ended 31 December 2006. This result is up $7.3 billion on the income credits in the previous year. The main countries from which income accrued for the year ended 31 December 2006 were:
  • United States of America ($11.9 billion or 43%)
  • New Zealand ($3.9 billion or 14%)
  • United Kingdom ($2.5 billion or 9%).