5232.0 - Australian National Accounts: Finance and Wealth, Jun 2017 Quality Declaration 
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 28/09/2017   
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CAPITAL INVESTMENT

CAPITAL ACCOUNT

Graph 1. Net lending (net borrowing), by sector, relative to GDP, seasonally adjusted
Graph Image for Graph 1. Net lending net borrowing, by sector, relative to GDP, seasonally adjusted

Source(s): Table 5. Non-Financial Corporations Capital Account, Current prices ($ million); Table 13. Financial Corporations Capital Account, Current prices ($ million); Table 26. General Government Capital Account, Current prices ($ million); Table 32. Household Capital Account, Current prices ($ million)



Australia has been a net borrower from overseas since September quarter 1975. In the national accounts, this is reflected by a negative value for net lending to non-residents. The ratio of net borrowing from overseas to GDP in June quarter 2017 was 2.2%, up from the March quarter 2017 result of 1.1% and down from 3.7% in June quarter 2016.

In June quarter 2017, general government net borrowing relative to GDP was 2.8%, up from 1.1% in March quarter 2017. Non-financial corporations net borrowing relative to GDP was 2.3% and net lending for financial corporations was 2.0%. Household net lending relative to GDP was 0.1% in June quarter 2017, down from 0.5% in March quarter 2017.

Graph 2. Gross fixed capital formation, by sector, relative to GDP, seasonally adjusted
Graph Image for Graph 2. Gross fixed capital formation, by sector, relative to GDP, seasonally adjusted

Source(s): Table 5. Non-Financial Corporations Capital Account, Current prices ($ million); Table 13. Financial Corporations Capital Account, Current prices ($ million); Table 26. General Government Capital Account, Current prices ($ million); Table 32. Household Capital Account, Current prices ($ million)



Capital investment by non-financial corporations as a proportion of GDP started growing during the 2000s peaking at 17.6% in December quarter 2012. It has since fallen to 11.0% of GDP in March quarter 2017 before falling to 10.7% in June quarter 2017.

Household investment as a proportion of GDP decreased gradually from 11.4% in March quarter 2004 to 7.3% in June quarter 2012. This was the result of growth in GDP being stronger than growth in household gross fixed capital formation. However, since March quarter 2013, growth in household gross fixed capital formation has been outpacing growth in GDP, resulting in the rise in the ratio until June quarter 2016 at 9.5%. In June quarter 2017, household investment was 9.1% of GDP, up slightly from 9.0% in March 2017.

General government investment as a proportion of GDP remained steady at approximately 3.0% through the 2000s, peaking at 4.6% in March quarter 2010. In June quarter 2017, general government investment was 4.1% of GDP. The uptick in the share of general government investment as a proportion of GDP in the June quarter 2017 is partly driven by the acquisition of the newly-completed Royal Adelaide Hospital by the South Australian government from the private sector.