STATISTICAL OVERVIEW
Balance of payments
The balance on current account for 2008-09 was a deficit of $38.4 billion (b), a decrease of $34.1b (47%) on the previous year (table 31.2). The net income deficit fell by $5.0b (10%) with a decrease in income credits of $1.8b (4%) and a decrease in income debits of $6.8b (7%). The balance on goods and services was a surplus of $5.8b, a turnaround of $29.3b on the deficit of $23.6b recorded in 2007--08. The net goods balance was a surplus of $8.2b and the net services balance was a deficit of $2.4b.
The surplus on capital account increased by $0.1b (6%) to $2.3b in 2008--09.
The financial account recorded a net inflow of investment into Australia in 2008-09 of $37.2b. This was largely driven by net portfolio investment of $55.2b together with net direct investment of $10.9b. This was countered by net decreases in other investment of -$10.7b, reserve assets of -$11.9b and financial derivative settlements of -$6.4b.
31.2 Balance of Payments, Summary |
|
 | | | | 2004-05 | 2005-06 | 2006-07 | 2007-08 | 2008-09 |
| | | | $m | $m | $m | $m | $m |
|
| Current account | -56 325 | -52 627 | -58 529 | -72 504 | -38 447 |
| Goods and services | -22 626 | -14 520 | -12 757 | -23 561 | 5 805 |
| | Credits | 167 562 | 196 274 | 215 695 | 233 853 | 285 701 |
| | Debits | -190 188 | -210 794 | -228 452 | -257 414 | -279 896 |
| | Goods | -23 006 | -15 291 | -14 510 | -22 346 | 8 214 |
| | | Credits | 127 867 | 154 425 | 169 514 | 182 818 | 231 728 |
| | | Debits | -150 873 | -169 716 | -184 024 | -205 164 | -223 514 |
| | Services | 380 | 771 | 1 753 | -1 215 | -2 409 |
| | | Credits | 39 695 | 41 849 | 46 181 | 51 035 | 53 973 |
| | | Debits | -39 315 | -41 078 | -44 428 | -52 250 | -56 382 |
| Income | -33 330 | -37 458 | -45 433 | -48 601 | -43 612 |
| | Credits | 21 741 | 26 692 | 36 454 | 42 022 | 40 224 |
| | Debits | -55 071 | -64 150 | -81 887 | -90 623 | -83 836 |
| Current transfers | -369 | -649 | -339 | -342 | -640 |
| | Credits | 4 268 | 4 602 | 5 155 | 5 264 | 4 991 |
| | Debits | -4 637 | -5 251 | -5 494 | -5 606 | -5 631 |
| Capital and financial account | 57 389 | 53 691 | 59 444 | 70 315 | 39 469 |
| Capital account | 1 594 | 1 726 | 2 380 | 2 167 | 2 287 |
| | Capital transfers | 1 523 | 1 729 | 1 957 | 2 168 | 2 533 |
| | | Credits | 2 674 | 2 673 | 2 995 | 3 382 | 4 072 |
| | | Debits | -1 151 | -944 | -1 038 | -1 214 | -1 539 |
| | Net acquisition/disposal of non-produced, non-financial assets | 71 | -3 | 423 | -1 | -246 |
| Financial account | 55 795 | 51 965 | 57 064 | 68 148 | 37 182 |
| | Direct investment | 51 494 | -6 456 | 10 129 | 26 749 | 10 925 |
| | | Abroad | 59 307 | -29 695 | -30 616 | -33 036 | -44 016 |
| | | In Australia | -7 813 | 23 239 | 40 745 | 59 785 | 54 941 |
| | Portfolio investment | 544 | 62 564 | 63 338 | -4 965 | 55 248 |
| | Financial derivatives | 961 | -3 768 | 3 469 | -7 820 | -6 372 |
| | Other investment | 10 919 | 5 230 | 255 | 9 892 | -10 722 |
| | Reserve assets | -8 123 | -5 605 | -20 127 | 44 292 | -11 897 |
| Net errors and omissions | -1 064 | -1 064 | -915 | 2 189 | -1 022 |
|
| 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 $18.1b in 1994-95 to $43.6b in 2008-09. The underlying level of net income drives the level of the current account deficit, as Australia continues to service its external liabilities. However, the balance on goods and services has been more volatile than net income as shown by the turnarounds in early 2000 and in 2008-09.
31.3 Current account, Summary
Ratios
The ratio of the current account deficit to gross domestic product (GDP) was -3.2% in 2008-09, a decrease on the previous year (table 31.4).
31.4 RATIOS |
|
| | | 2004-05 | 2005-06 | 2006-07 | 2007-08 | 2008-09 |
| | | % | % | % | % | % |
|
| To GDP | | | | | |
| Current account | -6.3 | -5.4 | -5.6 | -6.4 | -3.2 |
| Goods and services | -2.5 | -1.5 | -1.2 | -2.1 | 0.5 |
| | Credits | 18.7 | 20.3 | 20.6 | 20.7 | 23.9 |
| | Debits | -21.2 | -21.8 | -21.8 | -22.7 | -23.4 |
| Income | -3.7 | -3.9 | -4.3 | -4.3 | -3.6 |
| Net international investment position | 56.4 | 56.0 | 60.1 | 59.7 | 60.6 |
| | Net foreign equity | 7.9 | 3.7 | 7.2 | 5.2 | 7.7 |
| | Net foreign debt | 48.5 | 52.3 | 52.9 | 54.5 | 52.9 |
| To goods and services credits | | | | | |
| Net investment income | -19.8 | -18.9 | -20.9 | -20.5 | -14.9 |
| | Net foreign equity | -9.9 | -9.7 | -9.6 | -8.5 | -4.8 |
| | Net foreign debt | -9.8 | -9.2 | -11.3 | -12.0 | -10.1 |
|
| 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 2008-09 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 $4.0b (2%), and Australia’s imports of goods and services decreased by $6.5b (2%) between 2007-08 and 2008-09. In comparison, the current price value of those exports, which incorporates both volume and price changes, increased by $51.8b (22%) (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 7.6% to 113.2 in 2008-09, reflecting a 20.0% rise in the IPD for goods and services credits and a 11.5% rise in the IPD for goods and services debits.
31.6 CHAIN VOLUME MEASURES, IMPLICIT PRICE DEFLATORS AND TERMS OF TRADE(a) |
|
| | | | | 2004-05 | 2005-06 | 2006-07 | 2007-08 | 2008-09 |
|
| Chain volume measures | | | | | | |
| Goods and services | $m | 8 284 | -1 361 | -12 757 | -35 476 | -24 953 |
| | Goods and services credits | $m | 203 408 | 207 887 | 215 695 | 224 500 | 228 526 |
| | | Goods credits | $m | 160 337 | 164 308 | 169 515 | 175 092 | 178 265 |
| | | Services credits | $m | 42 546 | 43 326 | 46 182 | 49 408 | 50 260 |
| | Goods and services debits | $m | -195 125 | -209 246 | -228 452 | -259 976 | -253 479 |
| | | Goods debits | $m | -154 917 | -168 016 | -184 024 | -205 966 | -201 651 |
| | | Services debits | $m | -40 101 | -41 250 | -44 427 | -54 012 | -51 829 |
| Implicit price deflators | | | | | | |
| Goods and services credits | index | 82.4 | 94.4 | 100.0 | 104.2 | 125.0 |
| | Goods credits | index | 79.7 | 94.0 | 100.0 | 104.4 | 130.0 |
| | Services credits | index | 93.3 | 96.6 | 100.0 | 103.3 | 107.4 |
| Goods and services debits | index | 97.5 | 100.7 | 100.0 | 99.0 | 110.4 |
| | Goods debits | index | 97.4 | 101.0 | 100.0 | 99.6 | 110.8 |
| | Services debits | index | 98.0 | 99.6 | 100.0 | 96.7 | 108.7 |
| Terms of trade | | | | | | |
| Goods and services | index | 84.5 | 93.7 | 100.0 | 105.2 | 113.2 |
| | Goods | index | 81.9 | 93.0 | 100.0 | 104.8 | 117.3 |
| | Services | index | 95.2 | 97.0 | 100.0 | 106.8 | 98.8 |
|
| (a) Reference year for chain volume measures, price and term of trade indexes is 2006-07. |
| Source: Balance of Payments and International Investment Position, Australia (5302.0). |
International trade in goods by commodity (merchandise trade basis)
In 2008-09 Australia’s exports of goods were worth more than goods imported. This resulted in a surplus of $11.0b, a turnaround of $32.5b on the deficit of $21.5b recorded in 2007-08.
Graph 31.7 shows the top ten commodity exports in 2008-09. In 2008-09 total exports of goods increased by $49.6b (27%) to $230.5b. The largest increases were:
- Coal, not agglomerated, up $30.1b (123%)
- Iron ore and concentrates, up $13.7b (67%)
- Gold, non-monetary, up $4.8b (40%)
- Natural gas, up $4.2b (72%).
Graph 31.8 shows the top ten commodity imports in 2008-09. In 2008-09 total imports of goods increased by $17.2b (8%) to $219.5b. The largest increases were:
- Gold, non-monetary, up $3.9b (54%)
- Medicaments, up $0.9b (14%).
The largest decreases were:
- Passenger motor vehicles, down $3.5b (23%)
- Crude petroleum oils, down $2.3b (14%).
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 2008-09.
In 2008-09 Australia recorded a merchandise trade surplus of $11.0b. The following major trading partners were the main contributors to the overall surplus:
- Japan - trade surplus of $34.7b, up $19.4b due to a $17.6b increase in exports. Contributing to the increase in exports were coal, coke and briquettes (up $12.5b) and metalliferous ores and metal scrap (up $2.1b).
- India - trade surplus of $13.3b, up $5.6b due to a $6.1b increase in exports. Contributing to the increase in exports were coal, coke and briquettes (up $4.0b) and non-monetary gold (up $1.7b).
- Republic of (South) Korea - trade surplus of $12.7b, up $4.6b due to a $5.0b increase in exports. Contributing to the increase in exports were coal, coke and briquettes (up $4.6b) and metalliferous ores and metal scrap (up $0.9b).
- Taiwan - trade surplus of $4.1b, up $1.7b due to a $1.7b increase in exports. Contributing to the increase in exports were coal, coke and briquettes (up $1.5b) and metalliferous ores and metal scrap (up $0.2b).
In 2008-09 Australia recorded a merchandise trade deficit with a number of countries, the largest of which were:
- United States of America - trade deficit of $13.7b, a small increase on the previous year’s deficit.
- Germany - trade deficit of $8.9b, a decrease of $0.2b on the previous year's deficit, with a $0.8b increase in exports and $0.5b increase in imports.
31.9 INTERNATIONAL MERCHANDISE EXPORTS, Top 10 Countries - 2008-09 |
|
| Value (FOB) | Percentage share of Value (FOB) | Average annual growth over five years |
| $m | % | % |
|
| Japan | 52 547 | 22.8 | 21.5 |
| China | 39 302 | 17.1 | 31.7 |
| Korea, Republic of (South) | 19 207 | 8.3 | 17.7 |
| India | 15 434 | 6.7 | 26.0 |
| United States of America | 11 598 | 5.0 | 4.1 |
| United Kingdom | 11 510 | 5.0 | 17.5 |
| New Zealand | 8 553 | 3.7 | 1.1 |
| Taiwan | 8 156 | 3.5 | 17.1 |
| Singapore | 5 508 | 2.4 | 12.5 |
| Thailand | 4 939 | 2.1 | 14.9 |
|
| Source: International Trade in Goods and Services, Australia (5368.0). |
31.10 INTERNATIONAL MERCHANDISE IMPORTS, Top 10 Countries - 2008-09 |
|
| Value (Customs Value) | Percentage share of Value (Customs Value) | Average annual growth over five years |
| $m | % | % |
|
| China | 37 046 | 16.9 | 19.3 |
| United States of America | 25 342 | 11.5 | 4.9 |
| Japan | 17 838 | 8.1 | 2.1 |
| Singapore | 13 463 | 6.1 | 21.4 |
| Germany | 11 106 | 5.1 | 6.8 |
| Thailand | 10 753 | 4.9 | 24.0 |
| United Kingdom | 9 024 | 4.1 | 10.7 |
| Malaysia | 8 325 | 3.8 | 12.1 |
| New Zealand | 7 042 | 3.2 | 6.9 |
| Korea, Republic of (South) | 6 521 | 3.0 | 6.0 |
|
| 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 2004-05 to 2006-07 Australia recorded annual surpluses on its international trade in services. However for 2007-08 and 2008-09 Australia recorded annual deficits. The 2008-09 services deficit increased $1.2b (98%), with an increase in exports of $2.9b (6%) and an increase in imports of $4.1b (8%). The major contributors to services exports in 2008-09 were personal travel services, of which over half were education-related; transportation services; passenger transportation services; and miscellaneous business, professional and technical services. The major contributors to services imports were personal travel services, miscellaneous business, professional and technical services, freight services, and passenger transportation services.
31.11 INTERNATIONAL TRADE IN SERVICES, By service type |
|
| | 2004-05 | 2005-06 | 2006-07 | 2007-08 | 2008-09 |
| | $m | $m | $m | $m | $m |
EXPORTS |
|
| Transportation services | 8 002 | 8 208 | 8 617 | 9 247 | 8 126 |
| Passenger(a) | 4 144 | 4 104 | 4 237 | 4 118 | 3 705 |
| Freight | 704 | 608 | 609 | 637 | 588 |
| Other | 3 154 | 3 496 | 3 771 | 4 492 | 3 833 |
| Travel services | 21 440 | 22 624 | 25 161 | 28 252 | 30 959 |
| Business | 1 725 | 2 085 | 2 514 | 2 710 | 2 687 |
| Personal | 19 715 | 20 539 | 22 647 | 25 542 | 28 272 |
| Communications services(b) | 831 | 834 | 801 | 746 | 981 |
| Construction services | 106 | 134 | 136 | 24 | 120 |
| Insurance services | 684 | 704 | 704 | 724 | 747 |
| Financial services | 998 | 1 002 | 1 004 | 1 035 | 1 080 |
| Computer and information services | 1 251 | 1 198 | 1 482 | 1 586 | 1 818 |
| Royalties and licence fees | 706 | 772 | 887 | 777 | 831 |
| Other business services | 4 263 | 4 840 | 5 934 | 7 111 | 7 671 |
| Merchanting and other trade-related | 653 | 729 | 782 | 956 | 1 080 |
| Operational leasing | 19 | 35 | 88 | 87 | 129 |
| Miscellaneous business, professional and technical | 3 591 | 4 076 | 5 064 | 6 068 | 6 462 |
| Personal, cultural and recreational | 547 | 659 | 607 | 685 | 792 |
| Government services n.i.e. | 867 | 874 | 848 | 848 | 848 |
| Total | 39 695 | 41 849 | 46 181 | 51 035 | 53 973 |
IMPORTS |
|
| Transportation services | -13 796 | -14 508 | -15 360 | -16 380 | -15 874 |
| Passenger(a) | -5 780 | -6 284 | -6 876 | -7 278 | -6 336 |
| Freight | -7 500 | -7 776 | -8 036 | -8 600 | -8 933 |
| Other | -516 | -448 | -448 | -502 | -605 |
| Travel services | -14 507 | -15 090 | -15 934 | -20 153 | -22 161 |
| Business | -2 472 | -2 512 | -2 601 | -3 114 | -2 842 |
| Personal | -12 035 | -12 578 | -13 333 | -17 039 | -19 319 |
| Communication services(b) | -842 | -829 | -864 | -971 | -1 434 |
| Construction services | - | - | - | - | - |
| Insurance services | -872 | -900 | -900 | -932 | -969 |
| Financial services | -527 | -581 | -600 | -620 | -648 |
| Computer and information services | -1 095 | -1 067 | -1 427 | -1 478 | -1 665 |
| Royalties and licence fees | -2 482 | -2 734 | -3 185 | -3 516 | -3 540 |
| Other business services | -3 314 | -3 488 | -4 203 | -6 193 | -7 851 |
| Merchanting and other trade-related | -200 | -188 | -209 | -224 | -207 |
| Operational leasing | -698 | -769 | -867 | -843 | -795 |
| Miscellaneous business, professional and technical | -2 416 | -2 531 | -3 127 | -5 126 | -6 849 |
| Personal, cultural and recreational services | -1 120 | -1 080 | -1 107 | -1 159 | -1 392 |
| Government services n.i.e. | -760 | -801 | -848 | -848 | -848 |
| Total | -39 315 | -41 078 | -44 428 | -52 250 | -56 382 |
|
| - nil or rounded to zero (including null cells) |
| (a) Passenger transportation services includes agency fees and commission receipts for air transport. |
| (b) Communication services includes other services n.i.e.. |
| 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 2007-08.
31.12 SERVICES EXPORTS, Top 10 Countries - 2007-08 |
|
| Value | Percentage share of value | Average annual growth over five years |
| $m | % | % |
|
| United States of America | 5 871 | 11.5 | 2.7 |
| United Kingdom | 4 723 | 9.3 | 2.2 |
| China | 4 433 | 8.7 | 20.8 |
| Singapore | 4 131 | 8.1 | 13.0 |
| New Zealand | 3 475 | 6.8 | 6.7 |
| India | 2 524 | 4.9 | 37.9 |
| Japan | 2 498 | 4.9 | -5.2 |
| Korea, Republic of (South) | 1 887 | 3.7 | 13.7 |
| Hong Kong | 1 627 | 3.2 | -0.2 |
| Malaysia | 1 460 | 2.9 | 7.1 |
|
| Source: International Trade in Goods and Services, Australia (5368.0). |
31.13 SERVICES IMPORTS, Top 10 Countries - 2007-08 |
|
| Value | Percentage share of value | Average annual growth over five years |
| $m | % | % |
|
| United States of America | 8 871 | 17.0 | 7.3 |
| Singapore | 4 886 | 9.4 | 15.2 |
| United Kingdom | 4 168 | 8.0 | 1.6 |
| New Zealand | 2 501 | 4.8 | 4.4 |
| Japan | 2 467 | 4.7 | 5.5 |
| Hong Kong | 1 842 | 3.5 | 4.1 |
| Thailand | 1 841 | 3.5 | 20.2 |
| China | 1 398 | 2.7 | 7.7 |
| Germany | 1 272 | 2.4 | 1.0 |
| Switzerland | 1 063 | 2.0 | 0.4 |
|
| Source: International Trade in Goods and Services, Australia (5368.0). |
In 2007-08 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, India and the Republic of (South) Korea.
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 1999 and 30 June 2009 is mostly due to a rise in Australia's net foreign debt. At 30 June 2009 Australia's net foreign liabilities of $725.9b were comprised of net foreign debt of $633.2b and net foreign equity of $92.7b.
31.14 NET INTERNATIONAL INVESTMENT POSITION - 30 June
31.15 LEVELS OF FOREIGN DEBT - 30 June |
|
| | 2005 | 2006 | 2007 | 2008 | 2009 |
| | $m | $m | $m | $m | $m |
|
| Foreign debt assets(a) | -286 811 | -349 936 | -441 485 | -479 903 | -556 764 |
| Public sector | -73 023 | -82 725 | -97 895 | -57 601 | -83 145 |
| Private sector | -213 788 | -267 211 | -343 590 | -422 302 | -473 619 |
| Foreign debt liabilities(a) | 722 135 | 856 291 | 994 650 | 1 096 553 | 1 189 939 |
| Public sector | 83 606 | 88 451 | 81 374 | 89 500 | 113 614 |
| Private sector | 638 529 | 767 840 | 913 277 | 1 007 054 | 1 076 324 |
| Net foreign debt | 435 324 | 506 355 | 553 165 | 616 650 | 633 174 |
| Public sector | 10 583 | 5 726 | -16 522 | 31 899 | 30 469 |
| Private sector | 424 741 | 500 629 | 569 687 | 584 751 | 602 705 |
|
| (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). |
31.16 Levels of australian investment abroad and foreign investment in Australia - 30 June |
|
| | 2005 | 2006 | 2007 | 2008 | 2009 |
| | $m | $m | $m | $m | $m |
|
| Levels of Australian investment abroad | -608 852 | -791 618 | -968 687 | -1 002 741 | -1 009 242 |
| Direct investment abroad(a) | -198 820 | -272 102 | -316 844 | -318 218 | -303 893 |
| Portfolio investment assets | -230 606 | -310 169 | -397 863 | -408 829 | -362 866 |
| Financial derivative assets | -36 813 | -42 326 | -51 132 | -90 179 | -87 932 |
| Other investment assets | -86 444 | -103 206 | -123 165 | -149 660 | -202 241 |
| Reserve assets | -56 170 | -63 815 | -79 682 | -35 856 | -52 311 |
| Levels of foreign investment in Australia | 1 115 291 | 1 333 491 | 1 596 816 | 1 678 611 | 1 735 133 |
| Direct investment in Australia(b) | 274 482 | 301 158 | 351 246 | 391 596 | 408 080 |
| Portfolio investment liabilities | 654 008 | 825 903 | 1 000 261 | 974 964 | 966 944 |
| Financial derivative liabilities | 40 016 | 37 133 | 62 234 | 97 051 | 91 514 |
| Other investment liabilities | 146 784 | 169 296 | 183 076 | 215 000 | 268 594 |
|
| (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). |
Table 31.17 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.
31.17 INTERNATIONAL INVESTMENT POSITION |
|
| | | CHANGES IN POSITION REFLECTING
| |
| | Position at beginning of period | Transactions | Price changes | Exchange rate changes | Other adjustments | Position at end of period(a) |
| | $m | $m | $m | $m | $m | $m |
NET INTERNATIONAL INVESTMENT POSITION |
|
| Total | | | | | | |
| 2006-07 | 541 873 | 57 066 | 16 673 | 12 992 | -472 | 628 129 |
| 2007-08 | 628 129 | 68 149 | -31 431 | 11 321 | -298 | 675 870 |
| 2008-09 | 675 870 | 37 180 | -18 642 | 31 454 | 29 | 725 890 |
| Equity | | | | | | |
| 2006-07 | 35 518 | -6 214 | 16 831 | 29 086 | -258 | 74 964 |
| 2007-08 | 74 964 | -28 184 | -20 966 | 33 433 | -28 | 59 220 |
| 2008-09 | 59 220 | 66 269 | 11 218 | -43 279 | -712 | 92 716 |
| Debt | | | | | | |
| 2006-07 | 506 355 | 63 280 | -158 | -16 095 | -215 | 553 165 |
| 2007-08 | 553 165 | 96 333 | -10 467 | -22 113 | -269 | 616 650 |
| 2008-09 | 616 650 | -29 088 | -29 860 | 74 733 | 740 | 633 174 |
FOREIGN ASSETS(b) |
|
| Total | | | | | | |
| 2006-07 | -830 906 | -144 355 | -66 596 | 25 155 | 138 | -1 016 566 |
| 2007-08 | -1 016 566 | -90 534 | 31 906 | 26 764 | -182 | -1 048 612 |
| 2008-09 | -1 048 612 | -63 398 | 133 633 | -73 055 | -108 | -1 051 539 |
| Equity | | | | | | |
| 2006-07 | -480 970 | -63 539 | -59 590 | 29 086 | -66 | -575 081 |
| 2007-08 | -575 081 | -67 233 | 40 245 | 33 433 | -75 | -568 709 |
| 2008-09 | -568 709 | -19 563 | 136 858 | -43 279 | -82 | -494 774 |
| Debt | | | | | | |
| 2006-07 | -349 936 | -80 816 | -7 006 | -3 931 | 205 | -441 485 |
| 2007-08 | -441 485 | -23 301 | -8 340 | -6 671 | -107 | -479 903 |
| 2008-09 | -479 903 | -43 835 | -3 225 | -29 777 | -26 | -556 764 |
FOREIGN LIABILITIES(c) |
|
| Total | | | | | | |
| 2006-07 | 1 372 779 | 201 420 | 83 270 | -12 163 | -611 | 1 644 695 |
| 2007-08 | 1 644 695 | 158 683 | -63 337 | -15 442 | -116 | 1 724 482 |
| 2008-09 | 1 724 482 | 100 578 | -152 277 | 104 508 | 135 | 1 777 429 |
| Equity | | | | | | |
| 2006-07 | 516 488 | 57 326 | 76 421 | - | -190 | 650 045 |
| 2007-08 | 650 045 | 39 048 | -61 210 | - | 46 | 627 929 |
| 2008-09 | 627 929 | 85 832 | -125 641 | - | -630 | 587 490 |
| Debt | | | | | | |
| 2006-07 | 856 291 | 144 095 | 6 847 | -12 163 | -420 | 994 650 |
| 2007-08 | 994 650 | 119 633 | -2 127 | -15 442 | -162 | 1 096 553 |
| 2008-09 | 1 096 553 | 14 747 | -26 634 | 104 508 | 765 | 1 189 939 |
|
| - nil or rounded to zero (including null cells) |
| (a) Estimates differ from those in table 30.17 due to compilation at diffeent points in time. |
| (b) Assets include claims of Australian direct investment enterprises on direct investors abroad, which are classified as part of direct investment in Australia. |
| (c) 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 31.15 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 2009 the public sector was in a net debt liability position with non-residents of $30.5b. Of total private sector net foreign debt of $602.7b at 30 June 2009, private financial corporations accounted for $437.1b and private non-financial corporations accounted for $165.6b.
Levels of foreign investment in Australia and Australian investment abroad
In table 31.16, 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).
The level of Australian investment abroad rose $6.5b over 2008-09, while the level of foreign investment in Australia rose $56.5b over the same period. The difference largely mirrors the increase in the net International Investment Position (table 31.17). However, the items ‘Australian investment abroad’ and ‘Foreign investment in Australia’, in table 31.16, do not equate exactly with foreign assets and liabilities respectively, in table 31.17. The difference is due to netting off of assets and liabilities in regard to direct investment, both abroad and in Australia. In table 31.16, 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 31.17.
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