Australia and US our top investment partners

Australia and the United States continue to be New Zealand's top two investment partners, Statistics New Zealand said today.

Together, they accounted for $49 billion (46.9 per cent) of New Zealand's total investment abroad and $110.5b (47.1 per cent) of foreign investment in New Zealand, at March 31.

Britain, Switzerland and Singapore between them accounted for $20.4b of New Zealand's total investment abroad, up $10.3b from March 31, 2005.

Besides Australia and US, Britain was the other significant source of foreign investment in New Zealand accounting for $36b of the total, up $5.5 b.

Australia continued to be New Zealand's top investment partner, with direct investment relationships -- those where there is ownership of 10 per cent or more -- a key feature of the relationship.

Of New Zealand's total investment in Australia at 31 March, 37.4 per cent ($9.3b) was direct investment in Australia.

On the same date, of the total Australian investment in New Zealand, 57.4 per cent ($39.4b) was direct investment.

The finance and insurance industry continued to hold the largest proportion of New Zealand's overseas assets (70.3 per cent) and overseas liabilities (61.8 per cent).

In the year to March 31, overseas liabilities held by this industry increased $18.1b, reflecting an increase in borrowing by New Zealand banks from abroad for domestic lending.

- NZPA