Australia still major NZ investor

By Phil Boeyen, ShareChat Business News Editor

Friday 17th August 2001

There's been record growth in the amount of investment coming into New Zealand and the amount being invested overseas, with Australia continuing to dominate the trade both ways.

Latest figures show the level of foreign investment in New Zealand rose 72% for the year ended March while the amount of New Zealand investment overseas was up more than 100% for the same period.

Statistics New Zealand says that at the end of March Australian enterprises had $17.2 billion of foreign direct investment in New Zealand businesses, accounting for nearly 35% of the $49.3 billion total foreign direct investment in New Zealand.

Australia is also the largest destination of New Zealand foreign direct investment abroad.

New Zealand enterprises had $9.3 billion invested in Australia at the end of March, representing 63% of total foreign direct investment overseas by New Zealand enterprises.

For the first time the country's international investment position has been broken down by industry and reveals that finance and insurance and manufacturing are dominant, with government administration and defence also a major contributor.

"This reflects Treasury's holdings of overseas reserves and borrowing in the form of non-residents purchases of domestically issued government securities," Statistics New Zealand says.

OECD countries account for 95% of the total foreign direct investment stock in New Zealand, and the finance and insurance industry accounts for 58% of New Zealand's total international liabilities.

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