This article describes a geographic region that covers various exchanges, currencies, indices and stocks. View articles referencing this region.

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Marcus Tan

Australia is the 14th largest nation by GDP ^[1] with 1,010,699USD million.

Trends and Forces

Foreign Direct Investment (FDI) in Australia has been growing

Over the last five years, inward FDI stock has increased by an average of 9.1 per cent per annum. ^[2]

Strategic location

Australia is well placed to capitalise on growth in China and India. Its relative proximity to these two countries, plus already strong trade links, mean that Australia’s geographic location now represents a significant asset. ^[3]

Strong financial services sector

Finance and insurance is the fourth largest sector in Australia's economy, generating 8.1 per cent or A$81 billion of real gross value added in 2007-08. This contribution is up from 6.5 per cent two decades ago. The finance and insurance industry is almost as big as the mining sector (the industry traditionally associated with Australia's economic wellbeing) and its expansion has also aided growth in related sectors such as communications, property and business services. ^[4]

R&D investment

In 2005-06, business expenditure on research and development increased for the seventh consecutive year to a record $10.1 billion, effectively doubling over the previous five years^[5].

References

1. ↑ International Monetary Fund
2. ↑ Austrade, page on Foreign investment
3. ↑ Austrade, page on Strategic location
4. ↑ Strong and Sophisticated Financial Services Sector
5. ↑ Culture of innovation

Related Links

• The Australian Trade Commission (Austrade)
• Financing services in Australia