Data Alert 6 May 2014
Australia’s inward FDI stock exceeds A$600 billion in 2013
Australia’s inward foreign direct investment (FDI) stock reached A$630 billion in 2013, increasing over 40 per cent since
2008. This strong growth reflects Australia’s stable economic expansion over the past two decades.
Australia’s economic resilience, together with its strategic location, strong global trade and investment ties, a proven
track record of innovation, and an open and outward looking business environment, continues to position it as an ideal
investment destination in Asia. Australia ranked sixth globally in AT Kearney’s 2013 FDI Confidence Index for a second
consecutive year, and has moved steadily up the Index from 11th place in 2007.
›› After a 7.6 per cent rise in 2012, Australia’s FDI stock value grew
by 6.5 per cent to A$630 billion in 2013. This figure is more than
double the level of 10 years ago (A$292 billion). As a percentage of
GDP, Australia’s inward FDI stock was 41 per cent in 2013, up from
35 per cent a decade ago.
›› Australia’s share of world FDI stock rose to 2.7 per cent in 2012,
from 2.0 per cent in 2002, reflecting the confidence of global
investors in the country.
›› The US, UK and Japan remain Australia’s three largest investors with
total stock values accounting for 23.7 per cent, 13.8 per cent and
10 per cent respectively. FDI from the US and UK was robust, rising
13 per cent and 10 per cent respectively in 2013 – this double digit
increase continued from the previous year. Japan also performed
well, growing by two per cent in 2012 to A$63 billion, which is
double 2007 pre-GFC levels.
›› In recent years, there has been a solid increase in capital inflows
from Asia, a trend reflecting Australia’s closer ties to economies in the
fast-growing region. China has overtaken Switzerland and Canada
as the sixth largest foreign direct investor in Australia, with a total
value of almost A$21 billion. This latest figure represents a 29 per
cent increase from 2012. Other Asian nations are also emerging as
fast-growing sources of FDI, with Singapore rising by 5.3 per cent to
A$25 billion, and Malaysia by 36 per cent to A$7.7 billion in 2013.
›› A summary by industry of 2012-13 investment proposals from the
Foreign Investment Review Board has shown that the real estate
sector received the highest value of FDI, with approvals of
A$52 billion. This is followed by mineral exploration and development
at A$45 billion; and services (excluding tourism) at A$26 billion.
Again, the US was the largest source country for approved proposed
investment (A$21 billion), followed by Switzerland (A$18 billion),
China (A$16 billion), Canada (A$14 billion) and the UK (A$7 billion).
STOCK OF FOREIGN DIRECT INVESTMENT IN AUSTRALIA BY ECONOMY
A$ billion
Economy1
2008
2009
2010
2011
2012
2013
% Share
1USA
2
UK
3
Japan
4
Netherlands
5
Singapore
6
China
7
Switzerland
8
Canada
9
Germany
10
Bermuda
11
Malaysia
12
Hong Kong 13
France
14
Belgium
15
New Zealand
16
Thailand
17Luxembourg2
18
South Korea
19
Sweden
20
India
Total (all countries)
% Change
2012-13
% CAGR
2008-13
99.9 98.2112.0117.8131.9149.5 23.7 13.3
8.4
59.661.053.768.878.986.7 13.8 9.9 7.8
36.745.651.154.162.063.3 10.0 2.0 11.5
19.231.427.729.729.729.4 4.7 -0.9 8.9
10.416.718.820.023.925.2 4.0 5.3 19.3
3.6 9.112.914.416.120.8 3.3 29.0 41.7
19.517.820.922.922.519.1 3.0-15.3 -0.4
7.312.214.919.021.016.6 2.6-21.1 17.9
15.518.116.814.113.613.8 2.2 1.3 -2.3
5.89.57.55.86.39.6 1.552.510.6
NP4.53.7 NP5.77.7 1.236.1 NA
9.15.46.67.67.37.4 1.2 1.3-4.1
12.9
13.0
13.07.26.95.5 0.9
-20.0
-15.6
5.25.66.25.74.85.4 0.811.5 0.5
5.66.26.45.34.35.1 0.818.3-2.0
NPNPNPNPNP4.60.7 NA NA
NP3.21.53.44.22.4 0.4
-43.4 NA
1.01.32.1 NP2.12.0 0.3-4.515.5
1.71.31.71.51.61.5 0.2-7.7-2.9
0.1NPNP NP1.31.2 0.2
-13.375.8
444.2489.9519.7549.4591.3629.9 100.0
6.5
7.2
CAGR = Compound Annual Growth Rate from 2008 to 2013; NP = not available for publication but included in totals where applicable, unless otherwise indicated; NA = not applicable
1. Total FDI for British Virgin Island (BVI) is confidential in ABS statistics for 2013. DFAT estimates that direct investment levels for BVI in 2013 is valued at around A$19.5 bn and would rank 7th;
2. The order of rankings from No. 17 may change due to the impact of confidential information
Sources: Australian Bureau of Statistics Cat. No. 5352.0 – International Investment Position, Australia: Supplementary Statistics, 2013 (released 1 May 2014); Table 2. Foreign Investment in Australia:
Level of Investment by Country and Country Groups by type of investment and year; Austrade
For more information email [email protected] or visit www.austrade.gov.au