Foreign Direct Investment in Australia - statistics & facts
Australia is considered a very attractive option for foreign direct investment (FDI) by many companies across the globe, with a high ranking on the FDI confidence index in 2024. From the vital mining sector to investment in the transport and storage industry, FDI has become increasingly essential to the growth of the Australian economy. FDI accounted for around four percent of the national GDP in Australia in 2022, making it an important part of the nation’s financial activities.
It is hoped that with diplomatic relations slowing thawing between Australia and China, more substantial investments will be made by both nations to help ease the current economic instability in the region. Regardless, Australia’s lucrative industries continue to hold great appeal for foreign investors.
The variety of FDI in Australia
Though the mining, agribusiness, and renewable energy sectors have seen the largest share of foreign investment historically, there are many other smaller industries that have seen substantial investment. The information and communication industry in Australia has seen significant investment over the last few years, with around 34 billion Australia dollars spent in 2022. The same year saw the amount of FDI in the wholesale and retail trade sector increase, reaching just over 67 billion Australian dollars. The construction industry in Australia has also had a consistent level of investment over the years, with many foreign companies seeking to fund building projects across the country.Chinese FDI in Australia
The level of Chinese foreign investment in Australia has fallen dramatically in recent years, due to the COVID-19 pandemic and cooling diplomatic relations between the two nations. The value of Chinese Outward Direct Investment into Australia in 2016 was around 11.5 billion U.S. dollars, while in 2023 there was only around 600 million U.S. dollars, a dramatic decrease in such a short period of time. While there have been some extensive investments in the food and agribusiness sector, such as the purchase of Bellamy’s Australia for 1.5 billion Australian dollars, the largest share of Chinese investment in Australia has been in the mining and energy industry, accounting for 51 percent of all investments from 2006 to 2023. Some of the leading Chinese investments in the mining and energy industry have been considerable, Chinalcol’s purchase of a nine percent stake of mining giant Rio Tinto Group for 15 billion Australian dollars being the most sizeable.It is hoped that with diplomatic relations slowing thawing between Australia and China, more substantial investments will be made by both nations to help ease the current economic instability in the region. Regardless, Australia’s lucrative industries continue to hold great appeal for foreign investors.
