Foreign Direct Investment Fact Sheet 

KEY POINTS 

• Australia is experiencing continued growth in foreign direct investment. Over the five years to June 2007, the stock of foreign direct investment (FDI) in Australia increased by a substantial 123% to US$281 billion.  Over the decade to 2006, Australia was the fifth largest net recipient of foreign direct investment in the OECD.
• Australia’s major sources of FDI stock are the United States, the United Kingdom and Japan. However, there has been strong growth in FDI from developing Asian economies in recent years. For example, total foreign investment inflows from China and Hong Kong increased by 537% in 2006.
• The United Nations ranks Australia the 8th most attractive country for foreign direct investment in the world for 2007 - 2009.
• Australia is an attractive destination for FDI because of its strong and resilient economy, its low risk of political instability, its highly productive workforce, its world leading corporate governance standards and its strong links with the fast growing Asia Pacific region.
• Foreign direct investment is important for the Australian economy.  Majority foreign owned firms account for 23% of Australia's output, 50% of the value of goods exported, 46% of the value of services exports, and 42% of private R&D expenditure (Access Economics 2004)

FACTS AND FIGURES 

Stock of foreign direct investment in Australia 

Australia's major sources of foreign direct investment stock