ANALYSIS AND COMMENTS SECTORAL SUMMARY


INTERSECTORAL FINANCIAL FLOWS

During June Quarter 2007

Significant flows during the June quarter 2007 were the borrowings by non-financial corporations from financial corporations, net $20.6b, by financial corporations from general government, net $16.0b, and financial corporations from rest of the world, net $11.4b. Households acquired net financial assets of $6.5b from financial corporations, $3.7b from non-financial corporations and $3.2b from general government.

During 2006-07

Significant flows during the year ended June 2007 were the net $70.2b non-financial corporations raised from financial corporations and the net $60.9b borrowed by financial corporations from rest of world. The net acquisition of financial assets, by financial corporations from general government ($37.4b) and general government from non-financial corporations ($ 18.2b) partly reflect the impacts in the equity markets related to the privatisation of a public non-financial corporations during the year. Households acquired net financial assets of $19.8b from financial corporations.