Australia: Assets remain in strong demand - Westpac
Australia experienced a strong inflow of foreign direct investment in the September quarter, notes Elliot Clarke, Research Analyst at Westpac.
“Foreigners’ appetite for Australian portfolio assets was also strong, but was offset by Australian investors’ appetite for foreign securities.”
“Revisions have seen Australia’s international investment position revised down since the last release. They now stand at around 53.8% of GDP.”
“The net income deficit remains near its recent highs, but well below the last cycle peak. Critical to momentum in this income flow is the profitability of Australian corporates, particularly those in the resource sector.”