CAPITAL INVESTMENT

CAPITAL ACCOUNT

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 in March quarter 2018 was 2.3%, down from 3.3% in the December quarter 2017.

In the March quarter 2018, general government net borrowing relative to GDP was 1.0%, down from 1.2% in December quarter 2017. Non-financial corporations net borrowing relative to GDP was 2.9% and net lending for financial corporations was 2.8%. Household net borrowing relative to GDP was 1.3% in March quarter 2018, up from 1.1% in December quarter 2017.



Capital investment by non-financial corporations as a proportion of GDP started growing during the 2000s, peaking at 17.3% in December quarter 2012. This proportion has since fallen to 10.7% in March quarter 2018.

Household investment as a proportion of GDP decreased gradually from 11.6% in March quarter 2004 to 7.1% 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 GDP growth, resulting in the rise in the ratio until June quarter 2016 at 9.4%. In March quarter 2018, household investment was 8.9% of GDP, slightly down from 9.0% in December quarter 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 March quarter 2018, general government investment was 3.5% of GDP, slightly down from 3.6% in December quarter 2017.