Australia is an attractive destination for foreign direct investment

Australia is seen as an attractive destination for foreign direct investment (FDI). Over the last five years, inward FDI stock has increased by an average of 5.8 per cent per annum.

Australia now attracts a high level of FDI compared to other developed economies. The ratio of FDI to GDP is almost 36 per cent which is well above the average for comparable developed economies of 25 per cent (IMF/UNCTAD/AUSTRADE).

As of 30 July 2010, the stock of inward FDI in Australia was A$436 billion. The top four source countries were the United States, the United Kingdom, Japan and the Netherlands.

Out of the top 10 source countries, Singapore, Japan, Germany and the Netherlands have shown the strongest growth in FDI stock into Australia over the last five years.

The European Union remains Australia’s largest regional bloc source of FDI, accounting for close to 34 per cent of total FDI stock in 2009.

(Sources- ABS 5352.0 - International Investment Position, Australia: Supplementary Statistics 2009, UNCTAD World Investment Report to 2009)