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EU Investment in Australia
2009 update on Investment Survey
August 2006 The EU is Australia's leading foreign investor. Australian Bureau of Statistics (ABS) data indicates that the EU's total stock of investment at the end of 2005 had reached $A412bn, some 34% of total foreign investment and 8% more than in 2004. By comparison the US accounted for just under 27% (-9% on 2004), Japan 4% (+7%) and New Zealand 2% (+15%) of foreign investment in Australia .
Within the EU, the United Kingdom was the leading investor in 2005 accounting for 72% of the total stock of EU investment and 24% of all foreign investment in that year. The next largest EU investors in Australia were the Netherlands (7% of total EU), Belgium and Luxembourg (7%), Germany (5%) and France (4%). Together these six countries accounted for 94% of all EU investment in Australia . (see Appendix 1 and Figure 1 for detail).
Within the EU, the United Kingdom was the leading investor in 2005 accounting for 72% of the total stock of EU investment and 24% of all foreign investment in that year. The next largest EU investors in Australia were the Netherlands (7% of total EU), Belgium and Luxembourg (7%), Germany (5%) and France (4%). Together these six countries accounted for 94% of all EU investment in Australia . (see Appendix 1 and Figure 1 for detail).
 Source: ABS (2006), 5352.0
For foreign direct investment (ie. investment that actively involves the investor in the management of local Australian companies), the EU was also the largest investor in 2005, with a total stock of $A98bn, some 35% of total foreign direct investment in Australia and 15% higher than in 2004. Within this total, the UK accounted for $A51bn (52% of total EU direct investment), the Netherlands for $A19bn (13%), Germany for $A10bn (10%) and France for $A8bn (8%), with these four countries accounting for 84% of total EU direct investment in Australia (see Appendix 2 for detail).
The ABS also undertook a survey of industrial performance for foreign owned companies in 2000-01. This survey estimated that there were over 1500 companies from the EU (19% of total foreign companies) employing just under 270,000 people (34% of the total by foreign companies and 6% of total employment). These EU companies earned a total operating income of $A110bn (36% of all foreign and 13% of total) and accounted for an operating profit before tax of $A12bn (over 50% of all foreign and 13% of total). By number of companies, the EU companies were mainly in wholesale (31%); property and business services (22%); manufacturing (15%) and finance and insurance (12%). In terms of employment and operating income, manufacturing was the most important industry (29% and 34% respectively); with finance and insurance (39%); mining (25%) and manufacturing (23%) being the most important in terms of profit (see Appendix 3 for detail).
The results of this 2000-01 survey are dated, with EU direct investment increasing by nearly one-third since June 2001. Detailed knowledge of EU Member State missions also suggested that for some countries the ABS data may be understating the presence of their companies in Australia. For these and other reasons it was decided that EU diplomatic missions in Australia would conduct their own survey of EU companies in Australia during the first half of 2006 (see methodology ).
Appendix 1: Stock of total investment by major partners and EU Member States into Australia
|
Value ($A mn) |
|
|
|
Share of total (%) |
|
% change 2005 on |
|
2002 |
2003 |
2004 |
2005 |
|
2002 |
2003 |
2004 |
2005 |
|
2004 |
2002 1 |
2002 2 |
|
By major partner |
EU |
325,497 |
344,377 |
380,482 |
411,782 |
|
35.9 |
34.9 |
33.4 |
34.0 |
|
8.2 |
8.4 |
26.5 |
Japan |
49,494 |
46,401 |
49,768 |
53,329 |
|
5.5 |
4.7 |
4.4 |
4.4 |
|
7.2 |
3.0 |
7.7 |
USA |
238,687 |
285,388 |
356,985 |
325,294 |
|
26.3 |
28.9 |
31.3 |
26.9 |
|
-8.9 |
12.2 |
36.3 |
ASEAN |
34,513 |
32,561 |
33,233 |
37,270 |
|
3.8 |
3.3 |
2.9 |
3.1 |
|
12.1 |
2.5 |
8.0 |
NZ |
18,487 |
19,931 |
21,068 |
24,280 |
|
2.0 |
2.0 |
1.8 |
2.0 |
|
15.2 |
9.1 |
31.3 |
Other |
239,746 |
258,341 |
297,436 |
358,087 |
|
26.4 |
26.2 |
26.1 |
29.6 |
|
20.4 |
14.4 |
49.4 |
World |
906,424 |
986,999 |
1,138,972 |
1,210,042 |
|
100.0 |
100.0 |
100.0 |
100.0 |
|
6.2 |
10.6 |
33.5 |
|
By EU Member State |
Austria |
944 |
1,466 |
1,439 |
n.p. |
|
0.3 |
0.4 |
0.4 |
n.p. |
|
n.p. |
n.p. |
n.p. |
Belgium / Lux |
9,192 |
13,655 |
20,407 |
28,019 |
|
2.8 |
4.0 |
5.4 |
6.8 |
|
37.3 |
45.4 |
204.8 |
Denmark |
n.p. |
n.p. |
733 |
772 |
|
n.p. |
n.p. |
0.2 |
0.2 |
|
5.3 |
n.p. |
n.p. |
Finland |
376 |
114 |
264 |
370 |
|
0.1 |
0.0 |
n.p. |
n.p. |
|
40.2 |
8.2 |
-1.6 |
France |
8,209 |
11,150 |
15,784 |
15,155 |
|
2.5 |
3.2 |
4.1 |
3.7 |
|
-4.0 |
24.4 |
84.6 |
Germany |
14,275 |
15,737 |
17,243 |
21,099 |
|
4.4 |
4.6 |
4.5 |
5.1 |
|
22.4 |
13.5 |
47.8 |
Greece |
14 |
13 |
20 |
26 |
|
0.0 |
0.0 |
0.0 |
0.0 |
|
30.0 |
25.7 |
85.7 |
Ireland |
1,353 |
1,354 |
1,243 |
2,234 |
|
0.4 |
0.4 |
0.3 |
0.5 |
|
79.7 |
15.2 |
65.1 |
Italy |
2,186 |
3,050 |
996 |
634 |
|
0.7 |
0.9 |
0.3 |
0.2 |
|
-36.3 |
-38.3 |
-71.0 |
Netherlands |
19,037 |
22,163 |
26,176 |
29,837 |
|
5.8 |
6.4 |
6.9 |
7.2 |
|
14.0 |
16.4 |
56.7 |
Spain |
n.p. |
n.p. |
705 |
687 |
|
n.p. |
n.p. |
n.p. |
n.p. |
|
-2.6 |
n.p. |
n.p. |
Sweden |
756 |
1,968 |
1,849 |
1,904 |
|
0.2 |
0.6 |
0.5 |
0.5 |
|
3.0 |
31.1 |
151.9 |
United Kingdom |
253,439 |
260,733 |
277,656 |
294,693 |
|
77.9 |
75.7 |
73.0 |
71.6 |
|
6.1 |
5.3 |
16.3 |
Other EU |
15,716 |
12,974 |
15,967 |
16,352 |
|
4.8 |
3.8 |
4.2 |
4.0 |
|
2.4 |
3.3 |
4.0 |
EU |
325,497 |
344,377 |
380,482 |
411,782 |
|
100.0 |
100.0 |
100.0 |
100.0 |
|
8.2 |
8.4 |
26.5 |
Appendix 2: Stock of direct investment by major partners and EU Member States into Australia
|
Value ($A mn) |
|
|
|
Share of total (%) |
|
% change 2005 on |
|
2002 |
2003 |
2004 |
2005 |
|
2002 |
2003 |
2004 |
2005 |
|
2004 |
2002 1 |
2002 2 |
|
By major partner |
EU |
93,635 |
87,056 |
85,750 |
98,313 |
|
37.6 |
32.9 |
25.8 |
35.0 |
|
14.7 |
1.3 |
5.0 |
Japan |
16,659 |
18,371 |
18,678 |
23,805 |
|
6.7 |
6.9 |
5.6 |
8.5 |
|
27.4 |
11.5 |
42.9 |
USA |
70,646 |
82,955 |
141,411 |
69,065 |
|
28.3 |
31.4 |
42.5 |
24.6 |
|
-51.2 |
4.8 |
-2.2 |
ASEAN |
7,004 |
7,382 |
7,771 |
9,321 |
|
2.8 |
2.8 |
2.3 |
3.3 |
|
19.9 |
9.5 |
33.1 |
NZ |
4,158 |
5,512 |
6,382 |
5,889 |
|
1.7 |
2.1 |
1.9 |
2.1 |
|
-7.7 |
12.6 |
41.6 |
Other |
57,167 |
63,284 |
72,672 |
74,728 |
|
22.9 |
23.9 |
21.8 |
26.6 |
|
2.8 |
9.9 |
30.7 |
World |
249,269 |
264,560 |
332,664 |
281,121 |
|
100.0 |
100.0 |
100.0 |
100.0 |
|
-15.5 |
6.1 |
12.8 |
|
By EU Member State |
Austria |
n.p.
|
n.p. |
n.p. |
n.p. |
|
n.p. |
n.p. |
n.p. |
n.p. |
|
n.p. |
n.p. |
n.p. |
Belgium / Lux |
3,815 |
5,647 |
n.p. |
n.p. |
|
4.1 |
6.5 |
n.p. |
n.p. |
|
n.p. |
n.p. |
-38.3 |
Denmark |
n.p. |
n.p. |
n.p. |
n.p. |
|
n.p. |
n.p. |
n.p. |
n.p. |
|
n.p. |
n.p, |
n.p. |
Finland |
n.p. |
n.p. |
n.p. |
n.p. |
|
n.p. |
n.p. |
n.p. |
n.p |
|
n.p. |
n.p. |
n.p. |
France |
5,258 |
6,078 |
7,727 |
8,287 |
|
5.6 |
7.0 |
9.0 |
8.4 |
|
7.2 |
17.4 |
57.6 |
Germany |
7,550 |
7,669 |
8,413 |
9,891 |
|
8.1 |
8.8 |
9.8 |
10.1 |
|
17.6 |
9.4 |
31.0 |
Greece |
- |
- |
- |
- |
|
- |
- |
- |
- |
|
n.m. |
n.m. |
n.m. |
Ireland |
614 |
623 |
596 |
902 |
|
0.7 |
0.7 |
0.7 |
0.9 |
|
51.3 |
11.7 |
46.9 |
Italy |
n.p. |
2,910 |
n.p. |
491 |
|
n.p. |
3.3 |
n.p. |
0.1 |
|
n.p. |
n.p. |
n.p. |
Netherlands |
11,953 |
11,922 |
16,416 |
19,137 |
|
12.8 |
13.7 |
19.1 |
13.3 |
|
16.6 |
18.9 |
60.1 |
Spain |
n.p. |
n.p. |
n.p. |
n.p. |
|
n.p. |
n.p. |
n.p. |
n.p. |
|
n.p. |
n.p. |
n.p. |
Sweden |
683 |
910 |
1,082 |
1,249 |
|
0.7 |
1.0 |
1.3 |
1.3 |
|
15.4 |
21.9 |
82.9 |
United Kingdom |
55,423 |
45,608 |
43,124 |
51,314 |
|
59.2 |
52.4 |
50.3 |
52.2 |
|
19.0 |
-2.8 |
-7.4 |
Other EU |
8,339 |
5,689 |
8,392 |
7,042 |
|
8.9 |
6.5 |
9.8 |
7.2 |
|
-16.1 |
-1.2 |
-15.6 |
EU |
93,635 |
87,056 |
85,750 |
98,313 |
|
100.0 |
100.0 |
100.0 |
100.0 |
|
14.7 |
1.3 |
5.0 |
Source: Australian Bureau of Statistics (2006), Australia 's international investment position, 5352.0
Appendix 3: Industrial performance of EU companies in Australia in 2000-01 by country and sector 1
Country / Sector |
Operating Businesses |
Employment |
Total Operating Income |
Total Operating Expenses |
Operating Profit before Tax |
Total Assets |
Total Liabilities |
Gross Fixed Capital Formation |
Industry Value Added |
|
No. |
'000 |
$mn |
$mn |
$mn |
$mn |
$mn |
$mn |
$mn |
|
By Country |
Austria |
7 |
1.9 |
248 |
287 |
-26 |
258 |
161 |
-5 |
78 |
Belgium |
8 |
3.6 |
956 |
1,003 |
-37 |
818 |
611 |
34 |
110 |
Finland |
36 |
5.4 |
1,873 |
1,773 |
96 |
1,569 |
861 |
60 |
523 |
France |
113 |
23.9 |
9,383 |
8,028 |
1,503 |
59,759 |
50,617 |
-1,152 |
1,837 |
Germany |
378 |
28.3 |
14,898 |
13,622 |
1,406 |
32,632 |
22,299 |
1,152 |
3,557 |
Italy |
8 |
3.7 |
1,254 |
1,300 |
-46 |
948 |
739 |
75 |
211 |
Netherlands |
45 |
43.3 |
18,750 |
19,615 |
-648 |
39,866 |
32,993 |
979 |
1,208 |
Sweden |
101 |
14.6 |
6,716 |
6,378 |
365 |
4,389 |
2,856 |
np |
1,396 |
United Kingdom |
792 |
140.5 |
56,221 |
46,910 |
9,602 |
148,967 |
102,094 |
3,685 |
17,119 |
Other EU |
24 |
3.3 |
1,110 |
974 |
113 |
1,521 |
27,786 |
74 |
276 |
Total EU |
1,512 |
268.5 |
111,409 |
99,990 |
12,328 |
290,727 |
241,017 |
4,902 |
26,315 |
Total Foreign |
7,864 |
783.3 |
310,752 |
289,132 |
24,144 |
660,429 |
463,813 |
12,566 |
78,056 |
Australia |
400,277 |
4,457.4 |
870,092 |
781,319 |
93,861 |
2,156,732 |
1,573,398 |
33,391 |
241,202 |
|
By Sector |
Mining |
32 |
6.5 |
7,644 |
4,531 |
3,053 |
12,371 |
6,875 |
969 |
4,964 |
Manufacturing |
219 |
76 |
37,249 |
35,193 |
2,773 |
36,346 |
20,233 |
1,439 |
9,037 |
Construction |
15 |
6.5 |
2,203 |
2,197 |
49 |
835 |
633 |
31 |
438 |
Wholesale |
466 |
32.9 |
22,638 |
21,487 |
1,302 |
13,635 |
9,013 |
180 |
3,562 |
Retail |
42 |
30.8 |
7,933 |
7,948 |
-114 |
2,916 |
1,646 |
131 |
565 |
Accommodation, Cafes & Restaurants |
16 |
14.6 |
866 |
830 |
37 |
1,124 |
637 |
14 |
404 |
Transport, Storage & Communication |
96 |
29 |
9,869 |
9,557 |
428 |
13,681 |
7,748 |
2,423 |
3,293 |
Finance & insurance |
185 |
25.5 |
15,537 |
10,804 |
4,733 |
182,387 |
154,591 |
-776 |
n.a. |
Property & Business Services |
327 |
32.2 |
5,643 |
5,066 |
597 |
20,987 |
7,567 |
-102 |
2,527 |
Private Community Services |
68 |
6.3 |
400 |
348 |
52 |
640 |
126 |
8 |
79 |
Cultural, Recreational, Personal & other Services |
41 |
6.6 |
804 |
1,432 |
-601 |
2,794 |
np |
np |
88 |
Source: Australian Bureau of Statistics (2004), Economic Activity of Foreign Owned Businesses in Australia , 5494.0
1 Trend change;
2 Total Change;
n.p. not published;
n.m. not meaningful
For all industries excluding agriculture, forestry and fishing
n.a. not available
n.r. not reliable . negligible |
to download complete document (pdf) click here
For further information please contact:
John Tuckwell, Senior Adviser, Economic and Trade; Tel 02 6271 2734 ;
Email: john.tuckwell@ec.europa.eu
Media Enquiries: Roger Camilleri, Senior Adviser, Media & Public Affairs ; Tel 02 6271 2744; Email: roger.camilleri@ec.europa.eu
This page updated
October 22, 2009
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