Economic Investment in Australia Increasing

APEC Member Economies now account for 41% of the total stock of all foreign direct investment (FDI) in Australia, demonstrating the importance of the region to Australia's economic prosperity. The stock of FDI in Australia from APEC economies jumped by 7.3% during 2006 to reach $130 billion.



The 21 APEC (Asia-Pacific Economic Countries) members, referred to as 'Member Economies', are Australia; Brunei Darussalam; Canada; Chile; People's Republic of China; Hong Kong, China; Indonesia; Japan; Republic of Korea; Malaysia; Mexico; New Zealand; Papua New Guinea; Peru; Republic of the Philippines; The Russian Federation; Singapore; Chinese Taipei; Thailand; United States and Viet Nam.

The United States is a major source of investment, with a 57% share of the stock of FDI in Australia from APEC economies in 2006, followed by Japan (18%), New Zealand (6%) and China and Hong Kong (4%). FDI stock from China and Hong Kong in Australia has increased dramatically, up 196% over the past 5 years which shows the ever strengthening links between Australia and the rest of the region.

Invest Australia CEO, Barry Jones said that a key driver of foreign investment has been Australia's economic resilience with 16 years of strong and uninterrupted growth, as well as the country's location in the fast growing Asia-Pacific region.

"Asia's economies are forecast to account for 45% of world GDP by 2015 so Australia is very well positioned. Combine this with Australia's strong economic credentials and our business friendly regulatory environment, it is a compelling combination", Mr Jones said.

"Australia is very welcoming of investment from overseas. Foreign investment plays an important role in Australia's economic success and accounts for 14% of employment, or about 1.3 million jobs, 50% and 46% of the value of goods and services exported respectively and 42% of private R&D spending," Mr Jones said.

Australian companies have also been active in investing offshore with Australian outward FDI stock in APEC economies increasing by 17% over the year to December 2006 to reach $194 billion. This accounts for 68% of the total stock of Australian FDI abroad.

The United States was the principal destination for Australia's outward FDI within APEC, accounting for 60% of Australia's FDI stock to APEC members, followed by New Zealand (21%), China and Hong Kong (4%), Singapore (2.3%), and Papua New Guinea (1.4%).

More About Invest Australia: www.investaustralia.gov.au

Invest Australia, is the Australian Government's inward investment agency that helps international companies build their business in Australia and offers investors a free, comprehensive and confidential service.

Originally submitted by: Jack Sampson