|
|
At 30 June 2002, Australian investment abroad totalled $453.9b of which portfolio investment was $159.3b (35% of total Australian investment abroad), direct investment was $153.4b (34%), other investment $73.8b (16%), reserve assets $37.4b (8%) and financial derivatives $30.0b (7%) .
Over the period 30 June 1997 to 30 June 2002, financial derivatives increased 224% (from $9.3b at 30 June 1997 to $30.0b at June 2002) portfolio investment increased 160% (from $61.2b at to $159.3b), direct investment increased 72% (from $89.0b to $153.4b), other investment assets 88% (from $39.3b to $73.8b) and reserve assets 65% (from $22.8b to $37.4b).
The proportional split of total Australian investment abroad into direct investment, portfolio investment, financial derivatives, other investment assets and reserve assets remained relatively stable over the period 1996-1997 to 1999-2000; however for 2000-2001 and 2001-2002 there was a shift away from direct investment to portfolio investment. During this period direct investment decreased by 6% whilst portfolio investment increased by 3%.
LEVEL OF AUSTRALIAN INVESTMENT ABROAD AT END OF PERIOD
|
| Period | Direct
$m | Portfolio
$m | Financial derivatives
$m | Other
$m | Reserve
assets
$m | Total
$m |
ANNUAL
|
| 1996–1997 | -88,999 | -61,164 | -9,265 | -39,326 | -22,791 | -221,545 |
| 1997–1998 | -125,580 | -71,962 | -14,357 | -54,134 | -24,260 | -290,293 |
| 1998–1999 | -129,465 | -87,196 | -15,529 | -57,215 | -23,954 | -313,359 |
| 1999–2000 | -178,284 | -126,738 | -18,658 | -58,856 | -27,948 | -410,484 |
| 2000-2001 | -181,788 | -150,041 | -23,802 | -68,571 | -37,951 | -462,154 |
| 2001-2002 | -153,371 | -159,269 | -30,030 | -73,772 | -37,435 | -453,877 |
QUARTERLY
|
| 2000-2001 | | |  | | | |
| March | -160,820 | -147,326 | -34,998 | -74,869 | -35,306 | -453,320 |
| June | -181,788 | -150,041 | -23,802 | -68,571 | -37,951 | -462,154 |
| 2001-2002 | | | | | | |
| September | -157,079 | -140,403 | -33,340 | -68,668 | -39,216 | -438,707 |
| December | -178,911 | -155,409 | -28,933 | -69,995 | -36,549 | -469,797 |
| March | -171,386 | -162,129 | -23,730 | -74,442 | -33,117 | -464,804 |
| June | -153,371 | -159,269 | -30,030 | -73,772 | -37,435 | -453,877 |
Source: Balance of Payments and International Investment Position (5302.0). |
Explanatory Notes
Australian investment abroad generally refers to the stock of foreign financial assets (claims on non-residents) owned by Australian residents; and to the capital transactions and other changes which increase or decrease this stock. In balance of payments presentation, Australian investment abroad is shown with a negative sign.
There are five types of Australian investment abroad. Four of these are - direct, portfolio, financial derivatives and other investment. The fifth type is reserve assets. Reserve assets are foreign financial assets available to, and controlled by, the monetary authorities (principally the Reserve Bank of Australia) for financing or regulating payments, imbalances and other purposes.
Australians invest in foreign countries for a variety of reasons including: the securing and maintenance of market share, sales promotion, effective marketing, avoidance of foreign tariffs and import restrictions, securing of raw materials and to take advantage of cheaper inputs or higher rates of return on investments or to spread their risk.
|
Print Page