Australia’s UK FDI still rising

Greenfield investment monitor fDi Markets has recorded a year-on-year increase of FDI from Australia into the UK between 2012 and 2016. Over the period, Australia has been the second most prominent Asia-Pacific country for investing in the UK, behind only Japan. It overtook Japan to top the list in 2016, accounting for 29.19% of total projects from the region into the UK.

During 2012, 23 investment projects from Australia into the UK were recorded. This figure has subsequently increase year on year, with 2016 showing 47 projects, a rise of 104.35% compared with 2012. London was the top destination city in the UK for Australian investment, accounting for 38.10% of the projects in the period. Jobs created in the UK as a result of investment from Australian businesses has also increased during this period. In this case, 806 jobs were created during 2012. This figure also rose year-on-year, with 2016 showing more than four times as many as those recorded in 2012 (3472 jobs).

Capital investment showed a small decline in 2014 (down 2.28% from 2013), but has in general followed the same path as project numbers and jobs created. Between 2012 and 2016, fDI Markets shows growth from $165.8m in 2012 to $2.04bn in 2016. Real estate firm Goodman Group is responsible for a large portion of the capital investment from Australia into the UK, investing almost $4.5bn over the five-year period.

Although it is still too early to draw any conclusive results, it is interesting to note the impact of Brexit on Australian investment into the UK. When comparing the first half of 2016 with the second half, fDi Markets data illustrates that the June referendum’s result has had little effect. In the first half of the year, 26 projects were announced. This fell to 21 projects in the second half. However, 52.28% of capital investment took place in the second half of the year.