Australia still our main investment partner

Australia continues to be New Zealand's most significant investment partner, Statistics New Zealand saidtoday.

Australia is the main destination for New Zealand investment abroad, and the main source of foreigninvestment into New Zealand.

The significance of this investment partnership has increased in recent years.At 31 March 2007, the level of New Zealand's investment abroad was $111.0 billion, of which investment inAustralia was $30.1 billion (27.3 percent).

The level of foreign investment in New Zealand at 31 March 2007was $254.1 billion, of which $79.0 billion (31.1 percent) was investment from Australia. At 31 March 2002,Australia was the destination for 19.8 percent of New Zealand's level of investment abroad, and was thesource of 19.3 percent of the level of foreign investment in New Zealand.

New Zealand's other main investment partners continue to be the United States of America and the UnitedKingdom.

At 31 March 2007, these two countries, together with Australia, were the destination for 59.1percent of the level of New Zealand's investment abroad, and the source of 62.5 percent of the level offoreign investment in New Zealand.

Statistics by industry were also released today, along with data on the hedging of New Zealand's foreigncurrency denominated overseas debt.

The bulk of New Zealand's international assets and liabilities are heldby the manufacturing, finance and insurance, and government and defence industries.

At 31 March 2007,these three industries combined held 88.7 percent of New Zealand's assets abroad (compared with 86.7percent at March 2006), and carried 74.1 percent of New Zealand's international liabilities (compared with67.1 percent at March 2006).At 31 March 2007, New Zealand's foreign currency overseas debt was $85.4 billion.

Of this, 92.3percent was hedged, compared with 92.8 percent at 31 March 2006. Hedging manages risks, such aschanges to exchange rates, which affect the New Zealand dollar value of the debt