CAPITAL ACCOUNT

Graph 1. Net lending (net borrowing), by sector, relative to GDP, seasonally adjusted



Australia has generally been a net borrower from overseas. In the national accounts, this is reflected by a negative value for net lending to non-residents. The last time Australia was a net lender of funds to the rest of world was June quarter 1975. The ratio of net borrowing from overseas to GDP in June quarter 2015 was 4.7%, up from 3.4% in March quarter 2015. This is the highest net borrowing from overseas ratio since March quarter 2010.

In June quarter 2015, general government net borrowing relative to GDP was 3.5%, a rise from a net borrowing position of 2.3% in March quarter 2015. Non financial corporations net borrowing relative to GDP was 4.3%, net lending for financial corporations was 1.2%, while household net lending was 2.5%.

Graph 2. Gross fixed capital formation, by sector, relative to GDP, seasonally adjusted


Gross fixed capital formation by sector represents investment in capital assets. Capital investment by non-financial corporations as a proportion of GDP started growing during the 2000s peaking at 17.0% in the December quarter 2012. It has since returned to levels similar to 2010, representing 13.3% of GDP in June quarter 2015.

Household capital investment as a proportion of GDP remained steady between 2000 and 2010 at approximately 10% of GDP. Since June quarter 2008, growth in GDP has been stronger than growth in household gross fixed capital formation resulting in the ratio decreasing gradually. In June quarter 2015, household capital investment was 8.8% of GDP.

General government capital investment as a proportion of GDP remained steady at approximately 3.0% through the 2000s, with a recent peak of 4.6% in March 2010. In June quarter 2015, General government capital investment was 3.6% of GDP.