Sydney Australia skyline

Australia Investment

Australia Investment

Fixed Investment in Australia

The Australian economy recorded an average growth rate of 0.2% in fixed investment over the past decade. In 2022, fixed investment growth was 1.2%. For more investment information, visit our dedicated page.

Australia Investment Chart

Note: This chart displays Investment (annual variation in %) for Australia from 2014 to 2023.
Source: Australian Bureau of Statistics.

Australia Investment Data

2018 2019 2020 2021 2022
Fixed Investment (ann. var. %) 2.3 -2.4 -2.4 10.7 2.2
Business Investment (ann. var. %) 2.6 -0.7 -3.5 9.2 6.2
Dwelling Investment (ann. var. %) 4.3 -7.0 -4.4 9.4 -4.0

GDP grows at softest pace since Q3 2022 in the third quarter

GDP growth ebbed to 0.2% on a seasonally adjusted quarter-on-quarter basis in the third quarter, from 0.4% in the second quarter. Q3's reading marked the slowest growth since Q3 2022.

The downturn was driven by weakening private consumption, fixed investment and exports. Household spending recorded zero growth in the third quarter, which was below the second quarter's 0.1% expansion. Government spending, meanwhile, sped up to a 2.6% increase in Q3 (Q2: +1.4% s.a. qoq). Moreover, fixed investment growth fell to 1.1% in Q3, marking the worst result since Q4 2022 (Q2: +2.7% s.a. qoq), amid higher interest rates. On the external front, exports of goods and services contracted 0.7% in Q3, marking the worst result since Q1 2022 (Q2: +4.5% s.a. qoq). Conversely, imports of goods and services growth accelerated moderately to 2.1% in Q3 (Q2: +1.8% s.a. qoq). On an annual basis, economic growth accelerated to 2.1% in Q3, following the previous period's 2.0% growth.

The economy should expand at a relatively paltry pace in 2024 amid historically high inflation and interest rates. That said, sustained population growth, a further recovery in tourism and resilient global commodity demand will support activity. The evolution of China’s economy, particularly its housing market, is the key factor to monitor.

ING’s Robert Carnell commented: “Today's data don't close the book on further rate hikes, but they do make it harder for the RBA to justify further hikes without some stronger accompanying evidence that the inflation battle is stalling.”

Consensus Forecasts and Projections for the next ten years

How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Australian investment projections for the next ten years from a panel of 12 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable investment forecast available for Australian investment.

Download one of our sample reports to visualize what a Consensus Forecast is and see our Australian investment projections.

Want to get access to the full dataset of Australian investment forecasts? Send an email to info@focus-economics.com.

Latest Global GDP News

Free sample report

Interested in economic reports, analysis and data? FocusEconomics provides data, forecasts and analysis for hundreds of countries and commodities. Request your free sample report now.

Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest