USA, Australia And The UK Main Investment Partners

Balance of Payments and International Investment Position (Additional Information on International Investment): Year ended 31 March 2002

16 August 2002

USA, Australia And The UK Our Main Investment Partners

At 31 March 2002, New Zealand investors had investments valued at $25.1 billion in the United States of America, Statistics New Zealand's latest country analysis of international investment relationships shows. Investments in the United States of America were 31.7 percent of the $79.1 billion total value of New Zealand's investments abroad. By comparison, New Zealand's investments in Australia were valued at $16.4 billion (20.7 percent of the total), and investments in the United Kingdom were valued at $8.8 billion (11.1 percent) at March 2002.

The same three countries were major sources of foreign investment in New Zealand. At 31 March 2002, these three countries provided 57.0 percent of the $171.4 billion value of foreign investment in New Zealand: Australia, $36.8 billion (21.5 percent), the United Kingdom $31.8 billion (18.5 percent), and the United States of America $29.1 billion (17.0 percent). Other countries with significant investment in New Zealand were Hong Kong, Singapore, Japan and the Netherlands, which together accounted for nearly 20.9 percent of the total at March 2002.

Australia remains New Zealand's most important source and destination of direct investment (where an ownership relationship of 10 percent or more is established). At March 2002, New Zealand direct investment in Australia accounted for 53.7 percent of our total direct investment abroad of $16.1 billion; and Australian direct investment in New Zealand accounted for 36.4 percent of total foreign direct investment in New Zealand of $48.3 billion.

Portfolio investment comprises company shareholdings of less than 10 percent, and debt securities. New Zealand's portfolio investment abroad of $28.3 billion at March 2002 was dominated by fund managers holding shares in the United States of America. Foreign portfolio investment in New Zealand of $58.2 billion featured United Kingdom residents holding debt securities issued by New Zealand banks, and in government bonds issued by the Reserve Bank of New Zealand.

The residual investment category, other investment, comprises mainly loans, with deposits and trade finance. Of the March value of $20.9 billion of New Zealand other investment assets held abroad, 39.3 percent was held in the United States of America. The largest source of New Zealand's other investment liabilities of $58.8 billion was Australia, accounting for 21.3 percent of the total. Bank lending and borrowing in the form of loans dominate other investment.

Statistics showing New Zealand's international assets and liabilities classified by industry have also been released. These show that the single most significant New Zealand industry holding assets abroad, and being the recipient of foreign investment, continues to be finance and insurance. At March 2002, this industry accounted for 66.6 percent of New Zealand's assets abroad, and 57.7 percent of New Zealand's international liabilities. The manufacturing industry is also significant, holding 6.9 percent of New Zealand's international assets and 12.6 percent of its international liabilities.

Brian Pink

Government Statistician

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