5232.0 - Australian National Accounts: Finance and Wealth, Dec 2016 Quality Declaration 
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 30/03/2017   
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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


Australia has been a net borrower from overseas since June 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 December quarter 2016 was 0.9%, down from the September quarter 2016 result of 2.4% and down from 5.7% in December quarter 2015.

In December quarter 2016, general government net borrowing relative to GDP was 1.9%, down from 2.7% in September quarter 2016. Non-financial corporations net borrowing relative to GDP was 3.1% and net lending for financial corporations was 2.1%. Household net lending relative to GDP was 0.7% in December quarter 2016, down from 1.3% in September quarter 2016.

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


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 11.4% of GDP in September quarter 2016 before rising slightly to 11.5% in December quarter 2016.

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 that we saw until June quarter 2016 at 9.6%. In December quarter 2016, household investment was 9.1% of GDP, down slightly from 9.2% in September.

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 December quarter 2016, General government investment was 3.3% of GDP.