Australia is one of the OECD countries most open to foreign direct investment (FDI), the latter representing over one-third of the country's GDP. According to the World Investment Report 2013, published by the UNCTAD, Australia ranks in 7th place among the world's largest FDI recipients. Its economic liberalism, stability and the transparency of its legal system, in addition to its strong economic growth over the last 15 years, compensate for the narrowness of its market and its geographic isolation, making it a desirable investment destination. After having slowed down in 2009 due to the international financial crisis, FDI flows were very strong in 2011 especially in the energy sector. In 2012, FDI had doubled in relation to 2007. Australia ranks 10th in the classification Doing Business issued by the World Bank in relation to its business climate. In 2014, the government has suggested that the priority sectors for FDI influx should be: food-processing, energy, large infrastructures, tourism infrastructures and high-value added services.
|Index of Transaction Transparency*||8.0||6.0||7.0||5.0|
|Index of Manager’s Responsibility**||2.0||5.0||9.0||5.0|
|Index of Shareholders’ Power***||7.0||9.0||5.0|
|Index of Investor Protection****||5.7||6.1||8.3||5.0|
Source: Doing Business - Last Available Data.
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.
|Foreign Direct Investment||2011||2012||2013|
|FDI Inward Flow (million USD)||65,209||55,518||49,826|
|FDI Stock (million USD)||596,524||652,796||591,568|
|Performance Index*, Ranking on 181 Economies||24||-||-|
|Potential Index**, Ranking on 177 Economies||5||-||-|
|Number of Greenfield Investments***||325||341||324|
|FDI Inwards (in % of GFCF****)||15.4||12.6||11.8|
|FDI Stock (in % of GDP)||39.2||41.7||39.3|
Source: UNCTAD - Last Available Data.
Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.
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Last Updates: October 2014