ANALYSIS AND COMMENTS


INTERNATIONAL INVESTMENT POSITION

Australia's net international liability position as at 31 December 2017 was $986.2b, an increase of $8.7b on the previous year.

Level of foreign investment in Australia

The level of foreign investment in Australia reached $3,266.4b for the year ended 31 December 2017, an increase of $84.7b (3%). Portfolio investment accounted for $1,769.6b (54%), direct investment for $849.1b (26%), other investment for $494.8b (15%) and financial derivatives $153.0b (5%). Of the portfolio investment liabilities, debt securities accounted for $1,183.1b (36% of foreign investment in Australia) and equity securities for $586.5b (18% of foreign investment in Australia).

The leading investor countries for the year ended 31 December 2017 were:

• United Stated of America $896.9b (27%)
• United Kingdom $481.4b (15%)
• Belgium $305.3b (9%)
• Japan $219.2b (7%)
• Hong Kong (SAR of China) $116.6b (4%)
• Singapore $82.0b (3%).

Level of Australian investment abroad

The level of Australian investment abroad reached $2,280.2b for the year ended 31 December 2017, an increase of $76.0b (3%) on the previous year. Portfolio investment accounted for $1,036.0b (45%), direct investment for $590.6b (26%), other investment for $422.5b (19%), financial derivatives for $143.0b (6%) and reserve assets for $88.2b (4%). Of the portfolio investment assets, equity securities accounted for $660.7b (29% of Australian investment abroad) and debt securities $375.2b (16% of Australian investment abroad).

The leading investment destination countries for the year ended 31 December 2017 were:

• United Stated of America $664.5b (29%)
• United Kingdom $333.1b (15%)
• Japan $125.1b (5%)
• New Zealand $103.0b (5%)
• China (excludes SARS and Taiwan) $77.1b (3%)
• Germany $73.6b (3%).
  

FINANCIAL ACCOUNT TRANSACTION

The financial account for the year ended 31 December 2017 recorded a net inflow of $43.8b. This result is a decrease of $8.3b on a net inflow of $52.1b recorded for the previous year.

Foreign investment in Australia - Transactions

Foreign investment in Australia recorded a net inflow of $26.6b for the year ended 31 December 2017 a turnaround of $53.4b on the net outflow of $26.9b for the previous year.

Leading countries recording net inflows during 2017 were:

• United States of America $53.3b
• Belgium $42.2b
• Hong Kong (SAR of China) $10.8b.

Partly offsetting these, net outflows were recorded for the following countries:

• United Kingdom $82.6b
• China (excludes SARs and Taiwan) $17.9b
• Singapore $10.0b.

Australian investment abroad - Transactions

Australian investment abroad recorded a net inflow of $17.2b for the year ended 31 December 2017, a decrease of $61.8b (78%) on the net inflow of $79.0b for the previous year.

Leading countries recording net inflows during 2017 were:

• United Kingdom $28.6b
• United States of America $15.2b
• China (excludes SARs and Taiwan) $9.9b.

Partly offsetting these, net outflows were recorded for the following countries:

• Japan $13.1b
• Switzerland $8.7b
• Cayman Islands $7.1b.
  

INCOME

Income debits

Income debits totalled $100.1b for the year ended 31 December 2017, an increase of $15.5b on income debits for the previous year. The main countries to which income accrued for the year ended 31 December 2017 were:

• United States of America $24.9b (25%)
• United Kingdom $10.8b (11%)
• Japan $10.0b (10%)
• Belgium $6.7b (7%)
• Hong Kong (SAR of China) $2.8b (3%)
• Netherlands $2.3b (2%).

Income credits

Income credits totalled $52.0b for the year ended 31 December 2017, an increase of $0.6b on income credits from the previous year. The main countries from which income accrued for the year ended 31 December 2017 were:

• United States of America $12.7b (24%)
• New Zealand $5.4b (10%)
• United Kingdom $3.8b (7%)
• Germany $2.0b (4%)
• China (excludes SARs and Taiwan) $1.6b (3%)
• Netherlands $1.3b (2%).