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1360.0 - Measuring Australia's Economy, 2003  
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 03/02/2003   
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Contents >> Section 3. International Accounts and Trade >> Foreign Investment in Australia

The level of foreign investment in Australia at 30 June 2002 was $844.4b, an increase of 65% on the position as at 30 June 1997. Portfolio investment was $465.7b (55% of total foreign investment in Australia), direct investment was $210.9b (25%), financial derivatives was $30.9b (4%) and other investment was $136.8b (16%).

Over the period 30 June 1997 to 30 June 2002, the proportional split of total foreign investment in Australia into direct investment, portfolio investment, financial derivatives and other investment remained relatively stable, though financial derivatives and other investment have increased their relative shares. Over this same period, financial derivatives increased 202% (from $10.2b 30 June 1997 to $30.9b at 30 June 2002), other investment liabilities increased 123% (from $61.5b to $136.8b), portfolio investment increased 61% (from $289.2b to $465.7b) and direct investment increased 40% (from $150.8b to $210.9b).



LEVEL OF FOREIGN INVESTMENT IN AUSTRALIA AT END OF PERIOD
Period
Direct

$m
Portfolio

$m
Financial derivatives

$m
Other

$m
Total

$m

ANNUAL
1996–1997
150,827
289,182
10,221
61,470
511,700
1997–1998
162,371
332,038
15,040
77,783
587,231
1998–1999
174,478
348,145
17,826
94,565
635,014
1999–2000
195,679
405,857
21,431
114,022
736,989
2000-2001
201,060
468,119
23,591
130,418
823,187
2001-2002
210,909
465,747
30,910
136,838
844,404

QUARTERLY
2000-2001
March
200,869
443,658
34,708
138,572
817,808
June
201,060
468,119
23,591
130,418
823,187
2001-2002
September
202,373
460,757
29,750
125,883
818,763
December
208,413
476,201
24,739
130,567
839,920
March
215,705
473,049
23,782
129,742
842,277
June
210,909
465,747
30,910
136,838
844,404

Source: Balance of Payments and International Investment Position, Australia (5302.0).


Explanatory Notes

Foreign investment in Australia generally refers to the stock of Australian liabilities owed to non-residents; and to the financial transactions and other changes which change this stock. It is broken down into direct, portfolio, financial derivatives and other investment.

Direct investment is a category of international investment that reflects the objective of obtaining a long-term interest by a resident in one economy in an enterprise in another economy, and implies a significant degree of influence by the investor on the management of the enterprise. A direct investment relationship is generally deemed to be 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 in another economy. All financial transactions and positions between entities in a direct investment relationship (excluding certain inter-bank positions) are classified to direct investment.

The portfolio investment category covers investment in equity and debt securities (other than direct investment), financial derivatives (such as currency and interest rate swaps) are secondary securities linked to specific financial instruments, indicators or commodities, while other investment covers the remaining kinds of investments such as trade credits, loans, currency and deposits.


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