AUSTRALIA has maintained its position as the world’s sixth most assured market for foreign investment, for the second consecutive year.
According to AT Kearney’s 2013 Foreign Direct Investment (FDI) Confidence Index, the nation’s natural resources attracted hundreds of companies with combined annual revenue of more than US$2 trillion.
In a statement, AT Kearney said the survey of 300 company executives in 28 countries showed an increase in global market optimism.
“Australia remains in sixth place in the Index as continued resource development drives economic growth,” the statement said.
“This year, 70 per cent of corporate investors surveyed expect near-term recovery of their companies FDI levels.
“Half see their budgets as already returned to pre-crisis levels and 20 per cent expect a return by 2014. “If this were to happen, the FDI swell could provide a knock-on effect to global growth as macro-economic clouds clear away.”
AT Kearney chairman emeritus Paul Laudicina said the survey showed a return to cautious confidence.
“While investors are still in a holding pattern as they have been since the recession, they seem more optimistic and less jittery than they have in recent years,” he said.
The US reclaimed first place in the index, while higher labour costs meant China slipped to second, while Brazil maintained its third place ranking.
The FDI Confidence Index has been compiled annually since 1998. From 11th place in 2007 Australia has consistently improved its annual ranking.