Foreign investment in Australia (part II)

This is an article that follows on our initial article Foreign investment in Australia. Since when our records began Australia has been an at5tractive destination for foreign investment. Why not? Australia is a stable, democratic country with very low corruption and highly engaged workforce.

At the time of writing this article in 2019 direct investment in Australia reached 967.51 billion dollars.

Foreign direct investment in Australia has reached almost $1 trillion in 2019.
Foreign direct investment in Australia has reached almost $1 trillion in 2019.

Who are top countries investing in Australia

A number of countries are the destination of incoming capital. The United States was and remains the top source of direct foreign investment in Australia. Top 10 countries alone account for over 666 billion of direct foreign investment in Australia. This is a third of all incoming funds.

What to invest into in Australia

Some investors prefer to invest in property. Other prefer to invest in Australian share market. Each investment option has its own benefits and weaknesses. Comparison of both can be found here.

Top countries investing in Australia

  1. United states of America is a clear leader investing 214.29 billion in 2018
  2. This is followed by Japanese investors who is invested 105.90 billion in 2018
  3. The third is United Kingdom investors who invested 98.75 billion
  4. Fourth is Dutch based sources of finance at 49.26 billion
  5. Fifth is mainland China at 40.11 billion
Foreign direct investment in Australia has reached almost $1 trillion in 2019. Top countries are the US, the UK, Japan, Netherlands and China.
Top countries are the US, the UK, Japan, Netherlands and China.

Did the top sources of investment in Australia change over time?

Yes and no. The change is not as dramatic as some might think. If we look a decade ago, we can see that while the investment volume increased dramatically, countries did not change that much. Ten years ago, foreign direct investment in Australia was about half of what we see in 2018.

Foreign direct investment in Australia was barely $ half a trillion in 2008.
Foreign direct investment in Australia was barely $ half a trillion in 2008.

Yet, if we dive deeper into the numbers we can see that the countries are largely unchanged. The only difference is in the ranking and substitution of Switzerland with China.

Foreign direct investment in Australia was barely $ half a trillion in 2008. Top countries were the US, the UK, Japan, Switzerland and the Netherlands.
Top countries were the US, the UK, Japan, Switzerland and the Netherlands.

Finally, if we look at trend over time, it is obvious that the leaders in direct investment have been unchallenged for a while. More information on Statistics on who invests in Australia can be found here.

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