CAPITAL INVESTMENT

CAPITAL ACCOUNT

Net borrowing from overseas decreases

In seasonally adjusted terms, 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 fell to 1.5% this quarter.

National capital investment falls, driven by the household sector

Household investment as a proportion of GDP has now declined for two consecutive quarters. This is driven by weakness in new and used dwelling investment and is in line with falling residential building approvals.

Capital investment by non-financial corporations also contributed to the fall, driven by a continued decline in mining investment.

General government investment as a proportion of GDP increased to 3.9%. Recent increases in the ratio reflect public infrastructure investment by state and local general governments to support population growth and growing demand for public services.