Investor Updates
Australia’s FDI doubles over five years to 2012
26 July 2013
Inward foreign direct investment (FDI) flows into Australia more than doubled over the five years to 2012 to US$231 billion, according to the latest annual data from the United Nations Conference on Trade and Development (UNCTAD).
Total FDI inflows into Australia compared with the US$104 billion over the previous five-year period.
Australia’s FDI outpaced global growth of 28 per cent from 2008 to 2012. In addition, the nation’s share of FDI inflows into developed economies surged to 6.2 per cent from 2.8 per cent, reflecting Australia’s two decades of unbroken annual economic growth and investor confidence in its competitive business climate.
In 2012 alone, global FDI growth fell 18 per cent to US$1.35 trillion. However, annual data are often volatile due to economic uncertainty and sudden shifts in investor sentiment.
Over the five years to 2012, worldwide FDI rose 28 per cent to US$7.4 trillion, driven mainly by the surge in FDI inflows into developing and transitioning economies.
Flows into developing and transitioning economies grew more than 80 per cent over the five years to US$3.73 trillion.
FDI flows into developed economies were virtually unchanged at US$3.72 trillion.
FDI inflows into the US and China grew a respective 40 per cent and 64 per cent to US$1.04 trillion and US$563 billion. Total FDI inflows into these two major economies accounted for 14 per cent and 7.6 per cent, respectively, of the global total, up from 12.9 per cent and 5.9 per cent over the previous five years to 2007.
Australia total FDI inflows were the 9th largest in the world as of 2012, up from 15th over the previous five-year period.
Australia’s global share rose to 3.1 per cent over the latest five-year period from a previous 1.8 per cent. The nation’s share of FDI worldwide exceeded most major economies, including Singapore with 2.7 per cent; Canada also with 2.7 per cent; France, 2.5 per cent; India, 2.2per cent; Germany, 1.9 per cent; Italy, 0.8 per cent; South Korea, 0.7 per cent; and Japan, 0.5 per cent.
Australia ranked sixth on the Foreign Direct Investment Confidence Index, according to consultancy A.T. Kearney’s 2013 survey. Among the top 10 economies in the survey, Australia is the only one in the Asian region with a stable ranking.
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