The United Kingdom States and United States remain Australia’s largest sources of foreign investment. In recent years, there has been an increase in capital inflows from Asia, which reflects Australia’s closer ties to the economies of the fast-growing region. Australia’s strong and stable economy and well-managed companies make it a highly attractive location for foreign investment.

At the end of 2008, the United Kingdom accounted for 24.8% of Australia’s total foreign investment, while the United States contributed 24.3%. Among major investors, Korea, China, Singapore, Switzerland, Malaysia, Hong Kong SAR and Japan have recorded the fastest growth of foreign investment in Australia in the last three years.

The United States and the United Kingdom also controlled 24.3% and 15.4%, respectively, of the total foreign direct investment (FDI) in Australia. FDI indicates the intention of the investor to form a long-term relationship, where the investor has the capacity to significantly influence the management of the investment. The stock of FDI in Australia grew by 1.4% in 2008 and has increased by an annual average of 8% since 2003.

Japan, Hong Kong SAR and Singapore are the major sources of Asian foreign investment in Australia. The European Union accounted for one third of Australia’s stock of foreign investment at the end of 2008. Besides the United Kingdom, other European countries with significant investment interests in Australia include Switzerland, Germany, the Netherlands, France and Belgium.