Australian Consulate-General, Guangzhou
Media Release PD35/07 Date:7/11/2007
Australia's FDI stock up 20% to US$246 billion
Australia's FDI stock growth rate in 2006 more than double that of China
In 2006, the stock of foreign direct investment (FDI) in Australia increased by 20% to a record US$246 billion, reflecting Australia's increasing appeal as an internationally competitive investment destination, according to data released in UNCTAD's 2007 World Investment Report.
Over the period 2002-2006, the stock of FDI in Australia increased by a massive 122%.
Australia's 2006 increase in the total stock of FDI was above China's 2006 increase of 8% and more than double China's growth rate (51%) for the period 2000-2006.
As a location for Asia-Pacific based investment, Australia also performed well against neighbouring economies. Regionally, Australia's position as a host economy for FDI in 2006 remained strong with growth in FDI stock ahead of India (15%) and Singapore (13%); and also ahead of the US (12%).
Over the period 2000-2006, the increase in Australia's FDI stock was also above increases over the same period for Hong Kong (69%), Singapore (87%), East Asia (68%) and the US (42%).
"Australia's strong and continuous economic growth for the past seventeen years has provided an excellent platform for foreign direct investment," said Henry Wang, Senior Investment Commissioner Invest Australia Greater China.
"This growth, together with Australia's political stability and favourable regulatory environment, provides a rare and unique combination in the rapidly expanding Asia-Pacific region and a strong value proposition for multinational companies looking for a sound base in the region and to offer seamless access to Western markets like Europe."
Australia welcomes FDI to its shores and new players to its markets. This was evident in UNCTAD Report data showing that since 2002 the number of Greenfield investments into Australia had more than doubled. In 2006 alone, Australia attracted 152 Greenfield FDI projects – up from 65 in 2002 – substantially higher than other countries in the region including China (132), Hong Kong (112), Taiwan, (122), Singapore (98), Malaysia (71) and Indonesia (5).
The number of Australia's Greenfield investments in 2006 was also higher than those of many developed economies including Belgium (135), Denmark (138), Ireland (87), Poland (37) and the Czech Republic (38).
According to the UNCTAD report, in 2005 Australia was one of the most preferred locations for foreign affiliates of the top 50 financial TNCs, ranking 6th ahead of developed countries such as Hong Kong, Canada, Singapore and Japan. Australia is also attracting growing interest from the TNCs of developing and transition economies including China and India. In 2005, it ranked as the 8th most preferred location for foreign affiliates of these TNCs, ahead of France, Singapore, Japan and Canada.
Top 5 facts about Australia
• Australia has been ranked the most resilient economy in the world for five of the past six years (IMD WCY 2007)
• Over the decade to 2006, Australia was the 5th largest net recipient of FDI in the OECD (OECD 2007)
• Australia has the lowest risk of political instability in the region and 4th lowest in the world (WCY 2007)
• Australia is the fastest place in the world to start a business with regulatory procedures taking just two days (World Bank 2007)
• Australia has the fewest restrictions on product markets, the least public ownership of business and the least restrictive impact of business regulation on economic behaviour in the OECD (OECD 2007)
For further information, please contact Ms Willow Li, Research Assistant (Tel: 020 3814 0186, E-mail: [email protected])