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Australia’s strong foundations and an effective COVID-19 response position us as a preferential location for productive foreign direct investment.

Our proactive response to the global economic downturn has protected the Australian economy. Australia’s ability to adapt is our great strength, and it helps us meet current challenges. We have a flexible and resilient economy, as well as markets, which help us respond effectively to all manner of disruptions. Our resilience is built on sound governance and strong institutions. We have a record of global success in major industries, thanks to our strong ties with the world’s major markets.

Perhaps our greatest asset is our creative, resourceful and enterprising people. As one of the most multicultural and multilingual countries in the world, we use our global ties to connect with the best the world has to offer.

Here are 5 reasons why you should invest in and do business with Australia.

Resilient economy

In turbulent times, the Australian economy benefits from rock-solid foundations. Prior to 2020, the economy experienced just two years of negative growth during the previous six decades. And since the last recession in 1991, our growth rate has averaged 3.2 per cent, which is higher than every other major developed economy in the world.

Australia’s trade links with near neighbours are a major factor. The Asia region is ultra-fast growing, and Australia’s network of 14 free trade agreements across Asia and the Pacific have helped agile Australian businesses to rapidly expand.

While over 80 per cent of Australia’s economy is services-based, global leadership in several key industries powers our exports. Asian markets are hungry for Australian minerals and energy. Our agricultural industry is highly efficient, and our clean, green produce fetches premium prices in Asian markets.

Underpinning everything is our sound financial system, strong fiscal position and low government debt. This permits strategic investment in future industries and infrastructure.

1. A ROCK-SOLID ECONOMY SINCE 1961

Prior to 2020, Australia experienced just two years of negative growth over the previous six decades – in 1983 and 1991. This performance is unmatched by any other major, advanced economy in the world. Since 1992, Australia’s annual GDP growth rate has held steady, with an average increase of 3.2 per cent over 28 years.

2. AUSTRALIA OUTPACES ADVANCED ECONOMIES

At 3.2 per cent per year, Australian GDP growth since 1992 has outmatched most comparable economic regions, including the Euro area (1.6 per cent p.a.), UK (2.1 per cent p.a.) and the US (2.6 per cent p.a.). The Australian economy also outpaced G7 countries as a group, and the average growth rate of the world’s advanced economies.

3. AUSTRALIA’S A$2 TRILLION ECONOMY

Australia held its place as the world’s 14th largest economy in 2019, despite being home to just 0.3 per cent of the global population. Australia’s nominal gross domestic product (GDP) is estimated at almost A$2 trillion (US$1.4 trillion), which accounts for approximately 1.6 per cent of the global economy. In Australian dollars, the value of total national production has more than tripled in just two decades.

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Energy and resources made up around 75 per cent of Australia’s goods exports in 2019. The export mix is changing, however. During 2019, Australia rivalled Qatar as the world’s largest exporter of liquefied natural gas. Fresh investment in the mining and processing of lithium and rare-earth minerals will grow Australia’s role in the supply chain for electric vehicles and hightech devices.

Meanwhile, renewables are taking off. Australia’s coastal population and sunshine climate have seen wind and solar power soar. Today, they account for half of Australia’s renewable energy generation.

Australian agriculture is truly world-leading – in efficiency, technology and environmental credibility. This helps Australian farmers attract investment from around the world, and secure new customers for clean, green produce in Asia’s premium food markets. Our services industries are also strong. Australia’s financial markets manage the world’s fourth largest pool of pension fund assets – a sector that is growing faster in Australia than in any other developed economy.

1. AUSTRALIA’S GLOBALLY SIGNIFICANT INDUSTRIES

Australia is a leading provider of goods and services that are in high demand across the global economy. The country is one of the world’s top five exporters of minerals and fuels, with significant reserves of iron ore, gold and liquefied natural gas (LNG). Australia is also one of the world’s top 14 agricultural producers and a leader in the production of premium and clean, green produce. Meanwhile, Australia has large and sophisticated financial markets, with the world’s fifth largest pool of investment fund assets.

2. A LEADER IN NEW TECHNOLOGIES

Australia’s transition to a services-based economy is driving the development of new technologies in agriculture, education, financial services, health and other sectors. Innovation includes the use of blockchain in finance, immersive simulation technologies in education, robotics in medical procedures and the Internet of Things in agriculture. Australia is also recognised as a world leader in silicon-based quantum computing research.

3. ABUNDANT RESERVES OF MINERAL AND ENERGY RESOURCES

Australia has the world’s largest reserves of iron ore, gold, lead and zinc, as well as the second largest reserves of bauxite, nickel, lithium and cobalt. With the world’s largest uranium reserves and the second largest deposits of brown coal, Australia is a major energy supplier to Asian economies. New resources also beckon. Australia’s lithium industry will benefit from the rapid rise in demand for lithium-ion batteries that power electric vehicles. US demand will spur rareearths mining and processing.

Innovation & skills

Australia is one of the most creative countries in the world. Overall spending on research and development (R&D) has grown by 7 per cent per year since 2001. Business is the driving force, with commercial R&D rising almost 2 percentage points faster than Australia’s GDP.

Our universities are partly responsible. Seven Australian universities make it into the top 100 global rankings. In terms of academic impact, Australian publications outperform other countries’ in 20 out of 22 fields of academic research.

Then there’s the Australian workforce. Diverse, multilingual and multicultural, more than 28 per cent of our population was born overseas. Combined with the high skill levels of migrants, this multitalented workforce helps Australia thrive in today’s globalised economy.

1. AUSTRALIA’S ROLL CALL OF INNOVATION

Australia is a nation of inventors and entrepreneurs. The electronic pacemaker (1926), the ‘black box’ flight recorder (1958), ultrasound (1961), multi-channel cochlear implants (1970s), wi-fi (1990s), the polymer banknote (1988), Google Maps (2003) and a cervical cancer vaccine (2006) are all Australian innovations. With dynamic links between academia, industry and public services, Australia welcomes investment in its intellectual capital to help lay the groundwork for future discoveries.

2. AN INNOVATIVE, HIGHLY EDUCATED NATION

International studies recognise the high levels of skill and education in Australia’s workforce. According to the World Economic Forum (WEF) Global Competitiveness Report 2019, Australia’s scientific publication scores are among the world’s highest, and so are its metrics for critical thinking in teaching. Australia also ranked in the top 10 for availability of skilled labour, according to a study by the International Institute for Management Development (IMD).

3. A LEADING ECONOMY FOR RESEARCH AND DEVELOPMENT

With strong expenditure on research and development (R&D) as a percentage of GDP and a high proportion of available researchers, Australia is among the most innovative countries in the world – alongside the US, Japan and France.

Global ties

Australia is a trading nation, with exports and imports of goods and services making up 42 per cent of our gross domestic product in 2018–19. With 14 free trade agreements in place, approximately 70 per cent of Australian trade enjoys liberalised access to overseas markets. Twelve of our 15 largest markets are in Asia and Oceania, generating a trade value of around A$577 billion in 2018–19. Trade in services has grown at 6.3 per cent per year for the past two decades, helping to steadily broaden our export mix beyond resources and agriculture.

Growing 8.5 per cent per year since 2011, foreign direct investment (FDI) inflows help power our capital-intensive industries. In 2019, the mining sector accounted for 35.3 per cent of the total stock of overseas investment in Australia, worth A$360 billion. This FDI directly contributes to Australia’s minerals and energy exports, which reached around A$280 billion in 2018–19. Australia’s thriving manufacturing sector attracted A$131 billion of overseas investment in 2018–19.

1. AUSTRALIA’S EXPORT LINKS TO BOOMING ASIAN MARKETS

Australia’s integration with Asia’s dynamic economies is driving wealth creation. Goods and services exports totalled A$470 billion in 2018–19. China – Australia’s most-valuable export destination – received approximately one-third of total exports. A further 30 per cent of total exports collectively went to Japan, Korea, the US and India. Twelve of Australia’s top 15 export markets are located in Asia, with exports worth A$357 billion in 2018–19. This represents more than three-quarters of Australia’s current export earnings.

2. A TRADING NATION

In 2018–19, Australia’s two-way trade in goods and services totalled A$892 billion, making up approximately 46 per cent of nominal GDP. Twelve of Australia’s 15 largest markets are in Asia and Oceania, with a total trade value of around A$577 billion. This accounts for almost two-thirds of Australia’s total two-way trade. It also shows how integrated Australia’s economy is with our Asian neighbours.

3. AUSTRALIAN EXPORTS IN HIGH DEMAND

Commodities play a vital role in Australia’s export market, with iron ore, coal and liquefied natural gas the key products. The combined export value of these top three commodities (A$197 billion) accounted for 42 per cent of the nation’s goods exports in 2018–19. Australian services are a fast-growing export earner too, with a total value of A$97 billion in 2018–19. Their success demonstrates the global pull of Australia’s world-class education and tourism sectors.

Strong foundations

According to global measures, Australia outperforms in three key world-of-business metrics: we are one of the most business friendly countries in the world; we have the highest digital standard of living; and our cities have a low cost of living compared to major cities in the Asia-Pacific region. Australian commerce thrives because our economy is resilient. According to World Economic Forum’s 2019 survey, Australia outranks most developed countries for the soundness of our banks. Before the onset of the COVID-19 pandemic, we had one of the lowest public debt-to-GDP ratio across major developed economies.

Our regulation is transparent and efficient. Resilience is based on the fundamentals – good governance, strong institutions and the rule of law. The World Bank gives Australia some of the highest scores in the Asia-Pacific for the integrity of its legal system. In an uncertain world, this makes Australia a secure destination for foreign investment.

1. ONE OF THE WORLD’S MOST BUSINESS-FRIENDLY COUNTRIES

Australia is one of the easiest places in the world to do business. According to the World Bank, Australia improved four places to reach 14th position in the world for ease of doing business in 2020. When comparing economies with a population of more than 20 million, Australia now ranks fifth in the world, behind Korea (1st), the US (2nd), the UK (3rd) and Malaysia (4th). Globally, Australia ranks fourth out of 190 economies in terms of gaining credit, and seventh for ease of starting a business.

2. THE FOURTH MOST VALUABLE PENSION ASSETS IN THE WORLD

Australia’s compulsory superannuation system has helped create the world’s fourth largest pension assets market, valued at A$3 trillion (US$2 trillion) in 2019. As a proportion of GDP, Australia’s pension savings are now the second most valuable in the world. Assets rose to more than 150 per cent of GDP in 2019 – up from 110 per cent a decade ago. With an annual growth rate of 6.6 per cent in US dollar terms, this gives Australia the fastest growing pension assets market in the world. Rapid growth reflects the vitality of Australia’s pension system, a major driver of the country’s fast expanding managed funds industry.

3. A STABLE, FRIENDLY AND EFFICIENT BUSINESS ENVIRONMENT

Australia has one of the world’s strongest and most efficient regulatory environments. According to the World Bank, the country ranks highly in terms of economic resilience and the soundness of its banks. Australia ranks lowest in the world for debt dynamics (the change in the public debt-to-GDP ratio); second highest for social capital (social cohesion and engagement, community and family networks and political participation and institutional trust); and third highest for trade openness.

Australia is a compelling destination to develop, commercialise,

scale and source the next generation of agriculture and food technologies.

World-leading producer and exporter

Known globally for its clean, green and safe produce, Australia’s reputation as a leading agricultural producer is well established.

Exporting two-thirds of its agricultural production, Australia is ideally positioned within growing global markets and is well connected through established trade channels and free trade agreements. Australia’s strategic location offers international enterprises an ideal base to build sustainable export businesses.

Addressing global trends and challenges

Australia is creating and implementing agtech and foodtech solutions that enable farmers and food producers to manage key challenges. These include increasing production while managing scarce resources, and responding to ever-changing consumer demand for food that is healthy, convenient and traceable.

Track record of innovation

Australian farmers are innovative and have adopted new technologies and practices to drive consistent productivity growth and respond to a sometimes challenging physical environment. They are receptive to, and have a demonstrated appetite for, science and technology-based solutions.

Farmers and entrepreneurs in Australia have developed innovations such as drought-resistant crops, robust irrigation systems and technology that can predict yields and recommend optimal pastures and stocking density.

Thriving agtech and foodtech sector

Australia’s agtech and foodtech sector comprises farmers, as well as over 300 startups, scaleups and enterprises, a rich pool of accelerators and incubators, industry groups, and world-leading universities and research institutions. The strong relationship between farmers, industry and research institutions drives innovation and collaboration.

Research excellence

The quality of food and agriculture research and development in Australia is regarded as among the best in the world. Australia’s universities, research institutions and businesses are developing cutting-edge technologies with strong commercialisation potential. Technologies developed for use in other industries are often modified for use by growers, producers and food manufacturers.

A strong legislative and regulatory regime provides assurance that IP developed through R&D and innovation activities will be protected.

An ideal test market

Australia’s diversity of soils, climates and production systems provide an ideal testing ground to develop solutions that can then be exported around the world. The nation’s high-quality raw materials and ingredients, infrastructure and multicultural population allow organisations to trial and develop solutions relevant to multiple markets.

Strong government support

Australia offers significant government funding and legislative support for agtech and foodtech research, innovation, investment and commercialisation efforts.