Global ties and open markets

The gateway to wealthy Asia-Pacific markets and a solid opportunity base for global supply chain enrichment.

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Proximity to Asia’s powerhouse economies

Australia benefits from Asia’s prosperity. In 1981, Asia accounted for just 21% of global GDP with this share expected to reach 45% by 2026. Most of Australia’s principal export partners are located in Northeast and Southeast Asia. A network of 18 free trade agreements gives Australian companies preferential access to these fast-growing markets. Asia’s middle class is growing strongly with an anticipated 3 billion consumers by 2030. This will trigger increased demand for Australia’s top exports:

  • resources and energy 
  • agriculture 
  • education
  • tourism 
  • healthcare services.⁴
The figure has a graph and a table. The table shows the country or region and its GDP compound annual growth rate in percentage terms from 1981 to 2026. The information is as follows: China and India 9.9%; Japan, Australia and New Zealand 4.3%; ASEAN 7.4%; Newly Industrialised Economies 7.7%; Other developing Asia 7.7%; Avg. of Asia incl. Australia & NZ 7.7%; and World average 6.0%. The right-hand side axis plots the Asia plus Australia and New Zealand as a percentage of world’s GDP (right-hand axis) by year. The information is: 21% in 1981; 23% in 1986; 26% in 1991; 28% in 1996; 29% in 2001; 31% in 2006; 36% in 2011; 38% in 2016; 41% in 2021; and 43% in 2026 (forecast). In the left-hand side axis plots, the GDP based on purchasing power parity (PPP) by region in a stacked bar and year in the horizontal axis. The information for the left-hand side axis is: China and India $0.82 in 1981 trillion; $1.44 in 1986 trillion; $2.34 in 1991 trillion; $4.15 in 1996 trillion; $6.42 in 2001 trillion; $11.38 in 2006 trillion; $19.35 in 2011 trillion; $26.44 in 2016 trillion; $37.81 in 2021 trillion; $56.67 in 2026F trillion; Japan, Australia and New Zealand $1.43 in 1981 trillion; $2.06 in 1986 trillion; $3.06 in 1991 trillion; $3.70 in 1996 trillion; $4.24 in 2001 trillion; $5.22 in 2006 trillion; $5.74 in 2011 trillion; $6.52 in 2016 trillion; $7.41 in 2021 trillion; $9.34 in 2026F trillion; ASEAN-9² $0.50 in 1981 trillion; $0.75 in 1986 trillion; $1.29 in 1991 trillion; $2.05 in 1996 trillion; $2.44 in 2001 trillion; $3.65 in 2006 trillion; $5.11 in 2011 trillion; $6.61 in 2016 trillion; $8.51 in 2021 trillion; $12.74 in 2026F trillion; Newly Industrialised Economies³ $0.24 in 1981 trillion; $0.43 in 1986 trillion; $0.79 in 1991 trillion; $1.26 in 1996 trillion; $1.70 in 2001 trillion; $2.51 in 2006 trillion; $3.35 in 2011 trillion; $4.06 in 2016 trillion; $5.14 in 2021 trillion; $6.76 in 2026F trillion; Other developing Asia $0.10 in 1981 trillion; $0.14 in 1986 trillion; $0.20 in 1991 trillion; $0.29 in 1996 trillion; $0.39 in 2001 trillion; $0.57 in 2006 trillion; $0.83 in 2011 trillion; $1.23 in 2016 trillion; $1.75 in 2021 trillion; and $2.66 in 2026F trillion.

Foreign investment reaches A$4.7 trillion

Australia is a standout destination for global investors. Since 2003, the stock of Foreign Direct Investment (FDI) in Australia has risen by an average of 7.1% each year. Other forms of foreign investment – including portfolio investments – have grown by 8% per year. This strong growth has resulted in the value of foreign investment in Australia reaching A$4.7 trillion. Confidence in our economy means Australia has bucked global trends. When FDI in Australia surged by 9% in 2022, the total stock of global FDI dipped by 6%. Over the past 2 decades, foreign investment has had a growing role in Australia’s economy. As a percentage of GDP, the stock of foreign investment has grown from 129% in 2003 to 181% in 2023.

The graph plots the foreign investment stock in Australia by type (direct and other) from 2003 to 2023, expressed in billions of Australian dollars. The information is as follows: In 2003, A$317 billion for direct investment, A$753 billion of other, given a total of $1069 billion. The total represents 129% of GDP. In 2004, A$401 billion for direct investment, A$835 billion of other, given a total of $1236 billion. The total represents 138% of GDP. In 2005, A$370 billion for direct investment, A$968 billion of other, given a total of $1338 billion. The total represents 139% of GDP. In 2006, A$420 billion for direct investment, A$1174 billion of other, given a total of $1594 billion. The total represents 153% of GDP. In 2007, A$486 billion for direct investment, A$1314 billion of other, given a total of $1800 billion. The total represents 159% of GDP. In 2008, A$490 billion for direct investment, A$1388 billion of other, given a total of $1878 billion. The total represents 152% of GDP. In 2009, A$525 billion for direct investment, A$1472 billion of other, given a total of $1998 billion. The total represents 158% of GDP. In 2010, A$552 billion for direct investment, A$1517 billion of other, given a total of $2069 billion. The total represents 152% of GDP. In 2011, A$586 billion for direct investment, A$1568 billion of other, given a total of $2154 billion. The total represents 147% of GDP. In 2012, A$629 billion for direct investment, A$1690 billion of other, given a total of $2319 billion. The total represents 153% of GDP. In 2013, A$680 billion for direct investment, A$1918 billion of other, given a total of $2598 billion. The total represents 165% of GDP. In 2014, A$754 billion for direct investment, A$2143 billion of other, given a total of $2897 billion. The total represents 179% of GDP. In 2015, A$843 billion for direct investment, A$2335 billion of other, given a total of $3178 billion. The total represents 194% of GDP. In 2016, A$905 billion for direct investment, A$2445 billion of other, given a total of $3350 billion. The total represents 197% of GDP. In 2017, A$960 billion for direct investment, A$2512 billion of other, given a total of $3472 billion. The total represents 193% of GDP. In 2018, A$1046 billion for direct investment, A$2638 billion of other, given a total of $3684 billion. The total represents 194% of GDP. In 2019, A$1091 billion for direct investment, A$2907 billion of other, given a total of $3998 billion. The total represents 200% of GDP. In 2020, A$1074 billion for direct investment, A$3039 billion of other, given a total of $4113 billion. The total represents 208% of GDP. In 2021, A$1115 billion for direct investment, A$3108 billion of other, given a total of $4223 billion. The total represents 192% of GDP. In 2022, A$1215 billion for direct investment, A$3450 billion of other, given a total of $4665 billion. The total represents 188% of GDP. In 2023, A$1251 billion for direct investment, A$3479 billion of other, given a total of $4730 billion. The total represents 181% of GDP.

More about global ties & open markets

Chapter 4 in the Benchmark Report provides further data and insights into global ties and open markets.

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