Australia

Australia retained its position as one of the top four countries in the Asia Pacific region by attracting $8bn in 2003, despite a declining trend of global FDI inflows, according to the World Investment Report 2004 released by the United Nations Conference on Trade and Development. In November, the International Monetary Fund released a glowing assessment of the country’s economy, commending its “strong performance, with six years of budget surpluses, falling public debt, low inflation, high and rising productivity, and a long period of uninterrupted growth that has underpinned a dynamic job market”. In 2003-04, Australia recorded its 13th year of economic expansion and the IMF believes the outlook for the economy will remain favourable. While Australia boasts a rich, natural resource base and strong agricultural and resource industries, its biotech, information technology, renewable energy and services sectors have begun to dominate economic activity, contributing to nearly 80% of gross domestic product. As a cost-competitive location, it provides access to a highly skilled and multi-cultural workforce, excellent research and development skills and infrastructure, sophisticated information and technology systems, and an environment and regulatory system conducive to business. The government encourages FDI and fosters a transparent and pro-investment regulatory environment. Recent reforms to venture capital laws provide opportunities for international investors to diversify their portfolio into a new and exciting market.