Foreign Direct Investment in Australia by Industry

The mining industry had the largest level of foreign direct investment (FDI) in Australia in 2007, reflecting strong world demand for mineral commodities and the competitiveness of Australia’s resources industry. Other industries with large levels of FDI include manufacturing, wholesale and retail, and finance and insurance.

The level of FDI in Australia grew by 15% in 2007. The largest contributors to the increase were mining ($11.1 billion or 14%), property and business services ($10.5 billion or 50%), construction ($8.3 billion or 116%) and manufacturing ($8.0 billion or 13%).


Stock of Foreign Direct Investment in Australia by Industry, 2007 (1)
 
Industry (2) A$ million % share of total
Agriculture, forestry and fishing 708 0.2
Mining 92,185 24.5
Manufacturing 67,566 17.9
Electricity, gas and water 10,034 2.7
Construction 15,550 4.1
Wholesale and retail trade  54,491 14.5
Accommodation, cafes and restaurants 999 0.3
Transport and communication 32,343 8.6
Finance and insurance 51,036 13.5
Property and business services 31,603 8.4
Other services industries (3) 5,545 1.5
Unallocated (4) 14,895 4.0
Total 376,955 100





Footnotes:
1 As at 31 December 2007
2 Industry statistics should be treated with some caution as they do not necessarily reflect the industry of the end use of funds. First, the statistical unit (that is, the unit of observation and classification) generally consists of all enterprises in an enterprise group within a single resident institutional sector. The industry of this statistical unit, which may cover a broad range of activities, is determined on the basis of the predominant activity of the unit as a whole which may be quite different from the industry in which funds are used. Second, financial enterprises such as trading and merchant banks may borrow funds as principals and then on-lend to clients in other industries.
3 'Other services industries' includes general government.
4 'Unallocated' includes investment in trading enterprises placed through nominees and brokers.

Source: ABS Cat. No. 5352.0, December 2007.

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