STATISTICAL OVERVIEW
Balance of payments
The balance on current account for 2006-07 was a deficit of $59.2 billion (b), an increase of $5.3b (10%) on the previous year (table 31.2). The net income deficit rose $7.8b (20%) with an increase in income debits of $15.7b (25%) partly offset by an increase in income credits of $7.9b (32%). The deficit on goods and services was $12.0b, a decrease of $2.5b (17%) on the 2005-06 deficit of $14.5b. The net goods deficit fell by $1.5b (10%) and the net services surplus rose by $1.0b (128%) on the previous year.
The surplus on capital account increased by $0.7b (53%) to $2.1b in 2006-07.
The financial account recorded a net inflow of investment into Australia in 2006-07 of $57.2b. This was largely driven by net portfolio investment of $76.7b balanced by an increase in reserve assets of $20.1b. Net direct investment was largely unchanged, as a result of a significant increase in Australian direct investment abroad being almost totally matched by increased foreign direct investment in Australia in 2006-07.
31.2 BALANCE OF PAYMENTS, Summary |
| |
| | | | 2002-03 | 2003-04 | 2004-05 | 2005-06 | 2006-07 | |
| | | | $m | $m | $m | $m | $m | |
| |
Current account | -38 362 | -45 980 | -55 479 | -53 884 | -59 189 | |
| Goods and services | -15 946 | -21 509 | -22 626 | -14 520 | -12 033 | |
| | Credits | 151 790 | 147 205 | 167 562 | 196 274 | 215 850 | |
| | Debits | -167 736 | -168 714 | -190 188 | -210 794 | -227 883 | |
| | Goods | -18 470 | -23 559 | -23 006 | -15 291 | -13 790 | |
| | | Credits | 115 803 | 109 459 | 127 867 | 154 425 | 169 617 | |
| | | Debits | -134 273 | -133 018 | -150 873 | -169 716 | -183 407 | |
| | Services | 2 524 | 2 050 | 380 | 771 | 1 757 | |
| | | Credits | 35 987 | 37 746 | 39 695 | 41 849 | 46 233 | |
| | | Debits | -33 463 | -35 696 | -39 315 | -41 078 | -44 476 | |
| Income | -22 202 | -24 202 | -32 407 | -38 887 | -46 712 | |
| | Credits | 15 866 | 17 111 | 21 127 | 24 981 | 32 873 | |
| | Debits | -38 068 | -41 313 | -53 534 | -63 868 | -79 585 | |
| Current transfers | -214 | -269 | -446 | -477 | -444 | |
| | Credits | 4 233 | 4 273 | 4 269 | 4 313 | 4 261 | |
| | Debits | -4 447 | -4 542 | -4 715 | -4 790 | -4 705 | |
Capital and financial account | 38 460 | 45 782 | 56 353 | 54 642 | 59 259 | |
| Capital account | 991 | 1 095 | 1 212 | 1 355 | 2 075 | |
| | Capital transfers | 1 103 | 1 167 | 1 141 | 1 358 | 1 589 | |
| | | Credits | 2 404 | 2 571 | 2 674 | 2 673 | 2 998 | |
| | | Debits | -1 301 | -1 404 | -1 533 | -1 315 | -1 409 | |
| | Net acquisition/disposal of non-produced, non-financial assets | -112 | -72 | 71 | -3 | 486 | |
| Financial account | 37 469 | 44 687 | 55 141 | 53 286 | 57 185 | |
| | Direct investment | 10 739 | -15 926 | 44 949 | -14 140 | -44 | |
| | | Abroad | -9 636 | -26 225 | 54 715 | -31 920 | -35 165 | |
| | | In Australia | 20 375 | 10 299 | -9 766 | 17 780 | 35 121 | |
| | Portfolio investment | 17 498 | 82 458 | 4 784 | 68 251 | 76 669 | |
| | Financial derivatives | -1 036 | -2 800 | 3 461 | -578 | 2 907 | |
| | Other investment | 15 888 | -13 918 | 10 070 | 5 359 | -2 221 | |
| | Reserve assets | -5 620 | -5 127 | -8 123 | -5 605 | -20 127 | |
Net errors and omissions | -98 | 198 | -874 | -758 | -70 | |
| |
Source: Balance of Payments and International Investment Position, Australia (5302.0). |
Graph 31.3 shows the differing influences of the balance on goods and services (trade balance) and the net income deficit on the balance on current account. The net income deficit rose from $12.7b in 1992-93 to $46.7b in 2006-07. The underlying level of net income drives the level and direction of the current account deficit, as Australia continues to service its external liabilities. The trade deficit increased from $2.1b in 1992-93 to $12.0b in 2006-07 but fluctuated quite significantly over this period.
31.3 Current account, summary
Ratios
The ratio of the current account deficit to gross domestic product (GDP) was 5.8% in 2006-07, an increase on the previous year (table 31.4).
31.4 RATIOS |
| |
| | | 2002-03 | 2003-04 | 2004-05 | 2005-06 | 2006-07 | |
| | | % | % | % | % | % | |
| |
To GDP | | | | | | |
| Current account | -4.9 | -5.5 | -6.2 | -5.6 | -5.8 | |
| Goods and services | -2.0 | -2.6 | -2.5 | -1.5 | -1.2 | |
| | Credits | 19.4 | 17.5 | 18.7 | 20.3 | 21.1 | |
| | Debits | -21.5 | -20.1 | -21.2 | -21.8 | -22.2 | |
| Income | -2.8 | -2.9 | -3.6 | -4.0 | -4.6 | |
| Net international investment position(a) | 53.2 | 53.9 | 56.4 | 57.2 | 62.7 | |
| | Net foreign equity | 7.5 | 7.6 | 8.4 | 5.4 | 9.6 | |
| | Net foreign debt | 45.7 | 46.4 | 48.0 | 51.8 | 53.1 | |
To goods and services credits | | | | | | |
| Net investment income | -14.3 | -15.6 | -19.0 | -19.1 | -20.7 | |
| | Net foreign equity | -6.7 | -7.1 | -9.8 | -9.9 | -9.7 | |
| | Net foreign debt | -7.7 | -8.5 | -9.2 | -9.2 | -11.0 | |
| |
(a) These ratios are derived by expressing net foreign liabilities at end of year as a percentage of GDP at current prices for that year. |
Source: Balance of Payments and International Investment Position, Australia (5302.0). |
Exchange rates
Graph 31.5 shows movements in the annual average exchange rates for the major four currencies.
31.5 Exchange rates, units of foreign currency per A$(a)
International trade in goods and services (balance of payments basis)
Australia's international trade in goods and services (chain volume measures) for the five years to 2006-07 is shown in table 31.6.
Chain volume measures of exports and imports remove the effects of price changes. They provide measures, in dollar values, which indicate changes in the actual volume of exports and imports.
The chain volume measures of Australia's exports of goods and services increased by $6.6b (4%), and Australia's imports of goods and services increased by $19.4b (10%) between 2005-06 and 2006-07. In comparison, the current price value of those exports, which incorporates both volume and price changes, increased by $19.6b (10%) (table 31.2). This indicates that, on average, the prices of Australia's exports increased more rapidly than their volumes over the period.
Table 31.6 also presents various price indexes for Australia's trade in goods and services. The implicit price deflators (IPDs) are derived by dividing the current price measures (table 31.2) by the corresponding chain volume measures. These IPDs reflect not only price change, but also compositional effects from year to year.
Australia's terms of trade, which is a measure of the purchasing power of its exports over imported goods and services (derived by dividing the IPD for credits by the IPD for debits) rose by 7.2% to 118.9 in 2006-07, reflecting a 5.8% rise in the IPD for goods and services credits and a 1.4% fall in the IPD for goods and services debits.
31.6 CHAIN VOLUME MEASURES, Implicit price deflators and terms of trade(a) |
| |
| | | | | 2002-03 | 2003-04 | 2004-05 | 2005-06 | 2006-07 | |
| |
Chain volume measures | | | | | | | |
| Goods and services | $m | 9 158 | -7 009 | -22 627 | -32 674 | -45 458 | |
| | Goods and services credits | $m | 159 183 | 162 583 | 167 562 | 171 275 | 177 884 | |
| | | Goods credits | $m | 122 663 | 124 155 | 127 867 | 130 836 | 134 695 | |
| | | Services credits | $m | 37 785 | 38 886 | 39 695 | 40 438 | 43 188 | |
| | Goods and services debits | $m | -150 025 | -169 591 | -190 188 | -203 947 | -223 341 | |
| | | Goods debits | $m | -119 554 | -133 527 | -150 874 | -163 500 | -179 683 | |
| | | Services debits | $m | -30 404 | -36 017 | -39 314 | -40 447 | -43 657 | |
Implicit price deflators | | | | | | | |
| Goods and services credits | index | 95.4 | 90.5 | 100.0 | 114.6 | 121.3 | |
| | Goods credits | index | 94.4 | 88.2 | 100.0 | 118.0 | 125.9 | |
| | Services credits | index | 95.2 | 97.1 | 100.0 | 103.5 | 107.0 | |
| Goods and services debits | index | 111.8 | 99.5 | 100.0 | 103.4 | 102.0 | |
| | Goods debits | index | 112.3 | 99.6 | 100.0 | 103.8 | 102.1 | |
| | Services debits | index | 110.1 | 99.1 | 100.0 | 101.5 | 101.9 | |
Terms of trade | | | | | | | |
| Goods and services | index | 85.3 | 91.0 | 100.0 | 110.9 | 118.9 | |
| | Goods | index | 84.1 | 88.5 | 100.0 | 113.7 | 123.4 | |
| | Services | index | 86.5 | 97.9 | 100.0 | 101.9 | 105.1 | |
| |
(a) Reference yeat for chain volume measures, price and terms of trade indexes is 2004–05. |
Source: Balance of Payments and International Investment Position, Australia (5302.0). |
International trade in goods by commodity (merchandise trade basis)
In 2006-07 Australia's imports of goods were worth more than goods exported. This resulted in a $12.6b deficit. However, as the value of exports grew faster than imports, the deficit in 2006-07 was less than 2005-06 when there was a record deficit of $15.0b.
Graph 31.7 shows the top ten commodity exports in 2006-07. In 2006-07 total exports of goods increased by $15.7b (10%) to $168.2b. The largest increases were:
- Gold, non-monetary, up $3.3b (46%)
- Iron ore and concentrates, up $2.6b (21%)
- Crude petroleum oils, up $1.6b (27%)
- Ores and concentrates of base metals, up $1.3b (42%).
Graph 31.8 shows the top ten commodity imports in 2006-07. In 2006-07 total imports of goods increased by $13.3b (8%) to $180.8b. The largest increases were:
- Passenger motor vehicles, up $1.2b (10%)
- Motor vehicles for the transport of goods, up $0.9b (21%)
- Pumps for gas, up $0.8b (53%)
- Automatic data processing machines, up $0.7b (12%).
31.7 Merchandise exports of major commodities, by commodity group(a)
31.8 Merchandise imports of major commodities, by commodity group(a)
International trade in goods by country (merchandise trade basis)
For exports, country refers to the country to which the goods were consigned at the time of export. For imports, country refers to the country of origin of the goods, that is, where the majority of processing of the goods took place. Table 31.9 shows merchandise exports to Australia's ten main destinations; table 31.10 shows merchandise imports from the ten main countries of origin, in 2006-07.
In 2006-07 Australia recorded a merchandise trade deficit of $12.6b. The following major trading partners were the main contributors to the overall deficit:
- United States of America - trade deficit of $15.1b, an increase of $2.1b on the previous year's deficit largely due to a $2.2b increase in imports. The main commodities contributing to the increase in imports were office machines and automatic data processing machines (up $0.4b), miscellaneous manufactured articles, n.e.s. (up $0.4b) and road vehicles (up $0.3b).
- Germany - trade deficit of $7.8b, an increase on the previous year's deficit due to a $0.6b increase in imports. The main commodity contributing to the increase in imports from Germany was road vehicles (up $0.4b).
- Singapore - trade deficit of $5.5b, a decrease of $0.8b on the previous year's deficit due to $0.4b increase in exports and a $0.4b decrease in imports. The main commodities contributing to the increase in exports were petroleum products and related materials (up $0.3b) and non-monetary gold (up $0.2b). These same commodities also contributed to the decrease in imports with petroleum products and related materials (down $0.4b) and non-monetary gold (down $0.2b).
- China - trade deficit of $4.3b, a decrease of $0.8b on the previous year’s deficit due to a $4.7b increase in exports partly offset by a $3.9b increase in imports. The main commodities contributing to the increase in exports were metalliferous ores and metal scrap (up $2.0b) and non ferrous metals (up $0.3b). The commodities with the largest increase in imports were telecommunications and sound recording and reproducing apparatus and equipment (up $0.6b) and miscellaneous manufactured articles, n.e.s. (up $0.4b).
In 2006-07 Australia recorded a merchandise trade surplus with a number of countries, the largest of which were:
- Japan - trade surplus of $15.2b, up $1.5b due to a $1.5b increase in exports. Contributing to the increase in exports were metalliferous ores and metal scrap (up $1.0b) and non ferrous metals (up $0.7b).
- India - trade surplus of $8.8b, up $2.6b due to a $2.7b increase in exports. Contributing to the increase in exports were non-monetary gold (up $2.0b), metalliferous ores and metal scrap (up $0.2b) and non-ferrous metals (up $0.2b).
31.9 MERCHANDISE EXPORTS, Major countries of destination - 2006-07 |
| |
| Value | Share of total exports | Average annual change(a) | |
| $m | % | % | |
| |
Japan | 32 627 | 19.4 | 7.4 | |
China | 22 845 | 13.6 | 23.9 | |
Korea, Republic of (South) | 13 071 | 7.8 | 5.9 | |
India | 10 099 | 6.0 | 32.0 | |
United States of America | 9 821 | 5.8 | -3.9 | |
New Zealand | 9 453 | 5.6 | 4.3 | |
Taiwan | 6 192 | 3.7 | 5.1 | |
United Kingdom | 6 160 | 3.7 | 3.4 | |
Singapore | 4 625 | 2.7 | -1.3 | |
Thailand | 4 260 | 2.5 | 13.2 | |
| |
(a) In the 5-year period 2001-02 to 2006-07. |
Source: International Trade in Goods and Services, Australia (5368.0). |
31.10 MERCHANDISE IMPORTS, Major countries
of origin - 2006-07 |
| |
| Value | Share of total imports | Average annual change(a) | |
| $m | % | % | |
| |
China | 27 138 | 15.0 | 19.2 | |
United States of America | 24 927 | 13.8 | 3.0 | |
Japan | 17 409 | 9.6 | 2.4 | |
Singapore | 10 135 | 5.6 | 20.6 | |
Germany | 9 274 | 5.1 | 6.6 | |
United Kingdom | 7 402 | 4.1 | 3.5 | |
Thailand | 7 210 | 4.0 | 20.1 | |
Malaysia | 6 625 | 3.7 | 11.4 | |
Korea, Republic of (South) | 6 010 | 3.3 | 4.9 | |
New Zealand | 5 605 | 3.1 | 3.4 | |
| |
(a) In the 5-year period 2001-02 to 2006-07. |
Source: International Trade in Goods and Services, Australia (5368.0). |
International trade in services
Table 31.11 provides details of Australia's international trade in services, by service type.
During the period 2002-03 to 2006-07 Australia recorded small annual surpluses on its international trade in services. In 2006-07 exports of $46.2b were largely matched by imports $44.5b to give a surplus of $1.8b. The major contributors to services exports in 2006-07 were personal travel services, of which around half were education-related, passenger transportation services and miscellaneous business, professional and technical services. The major contributors to services imports were personal travel services, freight services, passenger transportation services, royalties and licence fees and miscellaneous business, professional and technical services.
31.11 INTERNATIONAL TRADE IN SERVICES, By service type |
| |
| | 2002-03 | 2003-04 | 2004-05 | 2005-06 | 2006-07 | |
| | $m | $m | $m | $m | $m | |
EXPORTS | |
| |
Transportation services | 7 386 | 7 530 | 8 002 | 8 208 | 8 763 | |
| Passenger(a) | 6 538 | 6 772 | 7 298 | 7 600 | 8 146 | |
| Freight | 848 | 758 | 704 | 608 | 617 | |
| Other(a) | np | np | np | np | np | |
Travel services | 18 312 | 20 099 | 21 440 | 22 624 | 25 220 | |
| Business | 1 584 | 1 850 | 1 725 | 2 085 | 2 464 | |
| Personal | 16 728 | 18 249 | 19 715 | 20 539 | 22 756 | |
Communications services(b) | 1 037 | 876 | 831 | 834 | 815 | |
Construction services | 105 | 104 | 106 | 134 | 144 | |
Insurance services | 673 | 686 | 684 | 704 | 704 | |
Financial services | 984 | 1 015 | 998 | 1 002 | 1 004 | |
Computer and information services | 1 160 | 1 218 | 1 251 | 1 198 | 1 475 | |
Royalties and licence fees | 661 | 669 | 706 | 772 | 894 | |
Other business services | 4 115 | 4 057 | 4 263 | 4 840 | 5 763 | |
| Merchanting and other trade-related | 514 | 637 | 653 | 729 | 785 | |
| Operational leasing | 27 | 23 | 19 | 35 | 40 | |
| Miscellaneous business, professional and technical | 3 574 | 3 397 | 3 591 | 4 076 | 4 938 | |
Personal, cultural and recreational | 752 | 657 | 547 | 659 | 603 | |
Government services n.e.i. | 802 | 835 | 867 | 874 | 848 | |
Total | 35 987 | 37 746 | 39 695 | 41 849 | 46 233 | |
IMPORTS | |
| |
Transportation services | -10 960 | -11 970 | -13 796 | -14 508 | -15 555 | |
| Passenger | -4 248 | -5 126 | -5 420 | -5 939 | -6 714 | |
| Freight | -5 808 | -6 056 | -7 500 | -7 776 | -8 044 | |
| Other | -904 | -788 | -876 | -793 | -797 | |
Travel services | -10 978 | -12 527 | -14 507 | -15 090 | -15 947 | |
| Business | -2 283 | -2 422 | -2 472 | -2 512 | -2 630 | |
| Personal | -8 695 | -10 105 | -12 035 | -12 578 | -13 317 | |
Communication services(b) | -1 495 | -1 067 | -842 | -829 | -860 | |
Construction services | - | - | - | - | - | |
Insurance services | -856 | -874 | -872 | -900 | -900 | |
Financial services | -581 | -540 | -527 | -581 | -600 | |
Computer and information services | -1 031 | -1 053 | -1 095 | -1 067 | -1 472 | |
Royalties and licence fees | -2 151 | -2 361 | -2 482 | -2 734 | -3 249 | |
Other business services | -3 793 | -3 564 | -3 314 | -3 488 | -3 978 | |
| Merchanting and other trade-related | -344 | -178 | -200 | -188 | -207 | |
| Operational leasing | -955 | -916 | -698 | -769 | -841 | |
| Miscellaneous business, professional and technical | -2 494 | -2 470 | -2 416 | -2 531 | -2 930 | |
Personal, cultural and recreational services | -934 | -984 | -1 120 | -1 080 | -1 067 | |
Government services n.e.i. | -684 | -756 | -760 | -801 | -848 | |
Total | -33 463 | -35 696 | -39 315 | -41 078 | -44 476 | |
| |
- nil or rounded to zero (including null cells) |
np not available for publication but included in totals where applicable, unless otherwise indicated |
(a) Passenger transportation exports includes other transportation services. |
(b) Communication services includes other services n.e.i.. |
Source: Balance of Payments and International Investment Position, Australia (5302.0). |
Tables 31.12 and 31.13 show Australia's main trading partners for exports and imports of services in 2005-06.
31.12 SERVICES EXPORTS, Major countries of destination - 2005-06 |
| |
| Value | Share of total exports | Average annual change(a) | |
| $m | % | % | |
| |
United States of America | 5 286 | 12.6 | -3.1 | |
United Kingdom | 4 356 | 10.4 | 2.2 | |
Japan | 3 184 | 7.6 | -3.8 | |
China | 3 169 | 7.6 | 25.2 | |
New Zealand | 3 006 | 7.2 | 5.9 | |
Singapore | 2 684 | 6.4 | 4.1 | |
Hong Kong (SAR of China) | 1 574 | 3.8 | 3.5 | |
Korea | 1 451 | 3.5 | 9.0 | |
India | 1 401 | 3.3 | 21.8 | |
Malaysia | 1 201 | 2.9 | 5.9 | |
| |
(a) In the 5-year period 2000-01 to 2005-06. |
Source: International Trade in Services by Country, by State and by Detailed Services Category, Financial Year (5368.0.55.003). |
31.13 SERVICES IMPORTS, Major countries
of origin - 2005-06 |
| |
| Value | Share of total imports | Average annual change(a) | |
| $m | % | % | |
| |
United States of America | 7 071 | 17.2 | 0.9 | |
United Kingdom | 4 004 | 9.7 | 0.3 | |
Singapore | 3 942 | 9.6 | 12.1 | |
Japan | 2 140 | 5.2 | -0.3 | |
New Zealand | 2 111 | 5.1 | 2.5 | |
Hong Kong (SAR of China) | 1 618 | 3.9 | 1.4 | |
Germany | 1 282 | 3.1 | 2.1 | |
China | 1 122 | 2.7 | 8.5 | |
Thailand | 1 055 | 2.6 | 8.6 | |
Switzerland | 834 | 2.0 | -2.9 | |
| |
(a) In the 5-year period 2000-01 to 2005-06. |
Source: International Trade in Services, by Country, by State and by Detailed Services Category, Financial Year (5368.0.55.003). |
In 2005-06 Australia recorded a deficit on its trade in services with its major services trading partner, the United States of America, and a small surplus with the United Kingdom. Deficits were recorded for most European trading partners, while surpluses were recorded with a number of Asian trading partners, most notably China and Japan.
International investment position
Australia's net international investment position is the difference between the levels of Australia's foreign financial liabilities and the levels of its foreign financial assets. Historically, Australia has had a net liability position with the rest of the world.
Graph 31.14 shows the components of Australia's international investment position, indicating that the growth in Australia's net international liabilities between 30 June 1997 and 30 June 2007 is mostly due to a rise in Australia's net foreign debt. At 30 June 2007 Australia's net foreign liabilities of $642.4b were comprised of net foreign debt of $544.1b and net foreign equity of $98.4b.
31.14 Net international investment position - 30 June
Table 31.15 provides a reconciliation between opening and closing levels for foreign financial assets, foreign financial liabilities and Australia's net international investment position for the past three financial years. Increases and decreases in these assets and liabilities are due to financial transactions (investment flows), price changes, exchange rate changes and other adjustments.
31.15 INTERNATIONAL INVESTMENT POSITION |
| |
| | Position at beginning of period | Changes in position reflecting - transactions | Changes in position reflecting - price changes | Changes in position reflecting - exchange rate changes | Changes in position reflecting - other adjustments | Position at end of period | |
| | $m | $m | $m | $m | $m | $m | |
NET INTERNATIONAL INVESTMENT POSITION | |
| |
Total | | | | | | | |
| 2004-05 | 453 326 | 55 141 | -10 170 | 7 614 | -233 | 505 678 | |
| 2005-06 | 505 678 | 53 286 | -16 414 | 11 357 | -1 336 | 552 571 | |
| 2006-07 | 552 571 | 57 185 | 17 603 | 14 377 | 704 | 642 438 | |
Equity | | | | | | | |
| 2004-05 | 63 840 | -7 689 | -4 687 | 23 940 | -17 | 75 386 | |
| 2005-06 | 75 386 | -20 245 | 356 | -4 541 | 836 | 51 792 | |
| 2006-07 | 51 792 | -486 | 18 161 | 29 412 | -515 | 98 364 | |
Debt | | | | | | | |
| 2004-05 | 389 487 | 62 830 | -5 483 | -16 327 | -216 | 430 291 | |
| 2005-06 | 430 291 | 73 531 | -16 769 | 15 898 | -2 172 | 500 779 | |
| 2006-07 | 500 779 | 57 671 | -558 | -15 035 | 1 219 | 544 075 | |
FOREIGN ASSETS(a) | |
| |
Total | | | | | | | |
| 2004-05 | -638 398 | 42 999 | -56 683 | 16 849 | -44 | -635 276 | |
| 2005-06 | -635 276 | -89 764 | -66 769 | -7 920 | 265 | -799 464 | |
| 2006-07 | -799 464 | -126 260 | -61 933 | 25 585 | 756 | -961 316 | |
Equity | | | | | | | |
| 2004-05 | -370 749 | 44 958 | -48 546 | 23 940 | 695 | -349 700 | |
| 2005-06 | -349 700 | -53 719 | -47 178 | -4 541 | 84 | -455 053 | |
| 2006-07 | -455 053 | -57 030 | -50 681 | 29 412 | -54 | -533 406 | |
Debt | | | | | | | |
| 2004-05 | -267 649 | -1 959 | -8 138 | -7 091 | -739 | -285 576 | |
| 2005-06 | -285 576 | -36 044 | -19 592 | -3 380 | 180 | -344 412 | |
| 2006-07 | -344 412 | -69 229 | -11 251 | -3 826 | 810 | -427 910 | |
FOREIGN LIABILITIES(b) | |
| |
Total | | | | | | | |
| 2004-05 | 1 091 724 | 12 142 | 46 513 | -9 235 | -189 | 1 140 954 | |
| 2005-06 | 1 140 954 | 143 049 | 50 355 | 19 278 | -1 601 | 1 352 035 | |
| 2006-07 | 1 352 035 | 183 445 | 79 536 | -11 208 | -52 | 1 603 755 | |
Equity | | | | | | | |
| 2004-05 | 434 589 | -52 647 | 43 858 | - | -713 | 425 086 | |
| 2005-06 | 425 086 | 33 474 | 47 534 | - | 753 | 506 845 | |
| 2006-07 | 506 845 | 56 544 | 68 842 | - | -461 | 631 770 | |
Debt | | | | | | | |
| 2004-05 | 657 135 | 64 790 | 2 654 | -9 235 | 522 | 715 867 | |
| 2005-06 | 715 867 | 109 577 | 2 822 | 19 278 | -2 353 | 845 190 | |
| 2006-07 | 845 190 | 126 900 | 10 693 | -11 208 | 409 | 971 984 | |
| |
- nil or rounded to zero (including null cells) |
(a) Assets include claims of Australian direct investment enterprises on direct investors abroad, which are classified as part of direct investment in Australia. |
(b) Liabilities include liabilities of Australian direct investors to direct investment enterprises abroad, which are classified as part of direct investment abroad. |
Source: Balance of Payments and International Investment Position, Australia (5302.0). |
Foreign debt
Australia's foreign debt liabilities include borrowing from non-residents and other non-equity liabilities to non-residents such as derivatives positions with a negative market value. Foreign debt assets include lending to non-residents and other non-equity assets such as derivatives positions with a positive market value. The majority of public sector debt assets are held by the Reserve Bank of Australia as reserve assets.
Table 31.16 shows foreign debt assets and liabilities and net foreign debt attributable to the public sector (general government plus public financial and non-financial corporations) versus the private sector. At 30 June 2007 the public sector was in a small net debt asset position with non-residents. Of total private sector net foreign debt of $559.1b at 30 June 2007, private financial corporations accounted for $456.0b and private non-financial corporations accounted for $103.1b.
31.16 LEVELS OF FOREIGN DEBT - 30 June |
| |
| | 2003 | 2004 | 2005 | 2006 | 2007 | |
| | $m | $m | $m | $m | $m | |
| |
Foreign debt assets(a) | -225 657 | -267 649 | -285 576 | -344 412 | -427 910 | |
| Public sector | -55 337 | -66 395 | -73 023 | -82 725 | -96 975 | |
| Private sector | -170 320 | -201 254 | -212 553 | -261 687 | -330 935 | |
Foreign debt liabilities(a) | 582 651 | 657 135 | 715 867 | 845 190 | 971 984 | |
| Public sector | 63 576 | 71 470 | 83 606 | 88 210 | 81 912 | |
| Private sector | 519 075 | 585 665 | 632 261 | 756 980 | 890 073 | |
Net foreign debt | 356 995 | 389 487 | 430 291 | 500 779 | 544 075 | |
| Public sector | 8 240 | 5 075 | 10 583 | 5 485 | -15 063 | |
| Private sector | 348 755 | 384 411 | 419 708 | 495 293 | 559 138 | |
| |
(a) Foreign debt levels between direct investors and direct investment enterprises are recorded on a gross basis for assets and liabilities. |
Source: Balance of Payments and International Investment Position, Australia (5302.0). |
Levels of foreign investment in Australia and Australian investment abroad
In table 31.17, levels of investment are categorised by direction (Australian investment abroad and foreign investment in Australia) and functional category (direct, portfolio, financial derivatives, other and reserve assets).
Direct investment is a category of international investment that reflects the objective of obtaining a lasting interest by a resident in one economy in an enterprise in another economy, and implies a significant degree of influence by the investor in the management of the enterprise. A foreign direct investment relationship is established when an investor, who is a resident in one economy, holds 10% or more of the ordinary shares or voting stock of an enterprise (direct investment enterprise) in another economy. The portfolio investment category covers investment in equity where the investor holds less than 10% of the ordinary shares or voting stock of an enterprise and investment in debt securities. The remaining categories are financial derivatives, other investment and reserve assets (in the case of Australian investment abroad).
31.17 LEVELS OF AUSTRALIAN INVESTMENT ABROAD AND FOREIGN INVESTMENT IN AUSTRALIA - 30 June |
| |
| | 2003 | 2004 | 2005 | 2006 | 2007 | |
| | $m | $m | $m | $m | $m | |
| |
Levels of Australian investment abroad | -502 663 | -608 327 | -606 159 | -768 206 | -923 276 | |
| Direct investment abroad(a) | -189 590 | -232 047 | -201 395 | -274 304 | -318 752 | |
| Portfolio investment assets | -160 685 | -199 132 | -223 021 | -280 653 | -343 468 | |
| Financial derivative assets | -40 735 | -42 058 | -38 790 | -46 300 | -56 717 | |
| Other investment assets | -70 894 | -84 748 | -86 784 | -103 134 | -124 657 | |
| Reserve assets | -40 760 | -50 342 | -56 170 | -63 815 | -79 682 | |
Levels of foreign investment in Australia | 918 568 | 1 061 653 | 1 111 837 | 1 320 776 | 1 565 715 | |
| Direct investment in Australia(b) | 252 561 | 274 082 | 271 698 | 289 934 | 331 398 | |
| Portfolio investment liabilities | 481 212 | 609 272 | 651 876 | 820 912 | 982 275 | |
| Financial derivative liabilities | 45 251 | 37 683 | 42 009 | 40 999 | 67 638 | |
| Other investment liabilities | 139 544 | 140 616 | 146 254 | 168 931 | 184 404 | |
| |
(a) Net direct investment abroad, after deduction of liabilities to direct investment enterprises abroad. |
(b) Net direct investment in Australia, after deduction of claims of Australian direct investment enterprises on direct investors. |
Source: Balance of Payments and International Investment Position, Australia (5302.0). |
The level of Australian investment abroad rose $155.1b over 2006-07, while the level of foreign investment in Australia rose $244.9b over the same period. The difference largely mirrors the increase in net foreign liabilities (table 31.15). However, the items 'Australian investment abroad' and 'Foreign investment in Australia', in table 31.17, do not equate exactly with foreign assets and liabilities respectively, in table 31.15. The difference is due to netting of assets and liabilities in regard to direct investment, both abroad and in Australia. In table 31.17, debt claims by direct investment enterprises on their direct investors are netted off against liabilities to direct investors (footnotes (a) and (b)). These items are not netted off in table 31.15.
Foreign ownership of equity in Australia
Table 31.18 shows the proportion of equity in Australian enterprise groups held by non-residents.
The total value of equity on issue by Australian enterprise groups at 30 June 2007 was $2,195b, of which non-residents held 29% and residents held 71%. As a percentage, foreign ownership of Australian equity has remained reasonably steady over the four-year period to 30 June 2007.
The major issuers of equity capital are non-financial corporations and banks, accounting for 65% and 14% respectively of the total equity issued by Australian enterprise groups in at 30 June 2007. Non-residents held 32% of the equity issued by non-financial corporations and 24% of the equity issued by banks.
31.18 FOREIGN OWNERSHIP OF EQUITY(a), By sectoral components - 30 June |
| |
| | | 2003 | 2004 | 2005 | 2006 | 2007 | |
| |
Non-financial corporations(b) | | | | | | | |
| Amount issued(c) | $b | 774.0 | 881.1 | 938.9 | 1 134.8 | 1 420.6 | |
| Amount held by rest of world | $b | 275.0 | 332.7 | 305.8 | 369.2 | 458.5 | |
| Proportion of foreign ownership | % | 35.5 | 37.8 | 32.6 | 32.5 | 32.3 | |
Banks | | | | | | | |
| Amount issued(c) | $b | 180.9 | 189.2 | 223.5 | 261.4 | 316.0 | |
| Amount held by rest of world | $b | 46.8 | 48.6 | 55.2 | 62.3 | 75.6 | |
| Proportion of foreign ownership | % | 25.9 | 25.7 | 24.7 | 23.8 | 23.9 | |
Non-bank deposit taking institutions | | | | | | | |
| Amount issued(c) | $b | 34.2 | 30.8 | 33.2 | 35.7 | 38.7 | |
| Amount held by rest of world | $b | 7.4 | 12.5 | 13.6 | 14.0 | 15.4 | |
| Proportion of foreign ownership | % | 21.7 | 40.4 | 41.1 | 39.3 | 39.8 | |
Other financial enterprises(d) | | | | | | | |
| Amount issued(c) | $b | 200.5 | 221.1 | 255.1 | 310.2 | 410.4 | |
| Amount held by rest of world | $b | 33.8 | 40.9 | 50.4 | 61.4 | 82.3 | |
| Proportion of foreign ownership | % | 16.9 | 18.5 | 19.8 | 19.8 | 20.0 | |
Central Bank | | | | | | | |
| Amount issued(e)(f) | $b | 11.7 | 12.5 | 11.2 | 12.7 | 9.7 | |
Total amount issued | $b | 1 201.3 | 1 334.8 | 1 461.9 | 1 754.8 | 2 195.4 | |
Total amount held by rest of world | $b | 363.0 | 434.6 | 425.1 | 506.8 | 631.8 | |
Proportion of foreign ownership | % | 30.2 | 32.6 | 29.1 | 28.9 | 28.8 | |
| |
(a) Equity includes units in trusts. |
(b) Includes private non-financial corporations, and Commonwealth, state and local public non-financial corporations. |
(c) These estimated market values are considered to be of poor quality. They should be used cautiously. |
(d) Includes life offices and superannuation funds, central borrowing authorities, and other financial enterprises. |
(e) Net asset values. |
(f) There is no foreign ownership in this component. |
Source: Australian National Accounts: Financial Accounts (5232.0); Balance of Payments and International Investment Position, Australia (5302.0). |