5232.0 - Australian National Accounts: Finance and Wealth, Sep 2018 Quality Declaration 
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 13/12/2018   
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CAPITAL INVESTMENT

CAPITAL ACCOUNT

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

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



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 September quarter 2018 was 2.3%, down from 2.6% in the June quarter 2018.

In the September quarter 2018, general government net borrowing relative to GDP was 0.1%, down from 0.2% in June quarter 2018. The decline in the rate of net borrowing over the last year has partly been driven by increases in income tax receivable. Non-financial corporations net borrowing relative to GDP was 3.3% and net lending for financial corporations was 2.1%. Household net borrowing relative to GDP was 1.3% in September quarter 2018, up from 1.1% in June quarter 2018.

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

Graph 2 shows 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 17.3% in December quarter 2012. This proportion has since fallen to 10.7%, driven by the declines in mining investment.

Household investment as a proportion of GDP decreased from 11.6% in March quarter 2004 to 7.2% 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, largely due to investment in dwellings. This saw the ratio rise until June quarter 2016. In September quarter 2018, household investment was 9.0% of GDP, down slightly from 9.1% in June quarter 2018.

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. Recent increases in the ratio have been driven by public infrastructure projects, with investment rising from 2.9% of GDP in September quarter 2015 to 3.9% in June quarter 2017. In September quarter 2018, general government investment was 3.7% of GDP, slightly up from 3.6% in June quarter 2018.