5232.0 - Australian National Accounts: Finance and Wealth, Sep 2016 Quality Declaration 
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 15/12/2016   
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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 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 September quarter 2016 was 2.7%. This has almost halved since September quarter 2015 (5.0%).

In September quarter 2016, general government net borrowing relative to GDP was 2.6%, down from 3.8% in June quarter 2016. Non-financial corporations net borrowing relative to GDP was 4.1% and net lending for financial corporations was 2.3%. Household net lending relative to GDP was 1.2% in September quarter 2016, the same as June 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

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)



Gross fixed capital formation by sector represents investment in capital assets. 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 11.3% of GDP in September quarter 2016.

Household capital 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 9.5%. In September quarter 2016, household capital investment was 9.4% of GDP, down slightly from last quarter.

General government capital investment as a proportion of GDP remained steady at approximately 3.0% through the 2000s, peaking at 4.6% in March quarter 2010. In September quarter 2016, General government capital investment was 3.2% of GDP.