Economic outlook and foreign investment
Optimism about Australia’s economic performance
Australians appear to have largely recovered from their concerns in 2020 about the global economic downturn. In the largest rebound in economic optimism in the 17 years of the Lowy Institute Poll, 79% of Australians say they are ‘optimistic’ or ‘very optimistic’ about Australia’s economic performance in the world. This represents a 27-point lift since 2020, and optimism about the economy is now higher than before the pandemic, although slightly lower than the levels after the global financial crisis, when 86% of the population expressed similar levels of optimism. This positive response to the pandemic-induced economic crisis is similar to that following the 2008–9 financial crisis, and is accompanied by a sharp drop in concern about a severe downturn in the global economy.
The question in 2008 was ‘If a company, bank or investment fund controlled by a foreign government was trying to buy a controlling stake in a major Australian company: please say whether you would be strongly in favour, in favour, opposed, strongly opposed.’ Response options were strongly in favour, in favour, opposed and strongly opposed. See 2021 Methodology for more information.
Indicates change in mode: see 2024 Methodology.
Investment from foreign countries
Australians’ longstanding scepticism about foreign investment persists in 2021. Revisiting a question asked in the 2008 Poll about whether companies with links to foreign governments should be permitted to invest in Australian companies, the vast majority of Australians oppose foreign government-controlled entities purchasing controlling stakes in Australian companies. However, some countries elicit stronger opposition than others.
Nine in ten Australians (92%) would oppose a Chinese-government controlled entity purchasing a controlling stake in an Australian company. Hong Kong is the fifth-largest source of foreign investment in Australia. However, 86% say they would oppose a Hong Kong-government controlled entity purchasing a controlling stake in an Australian company.
A neutral option was offered to respondents in 2005 and 2007.
Indicates change in mode: see 2024 Methodology.
The majority of Australians would also oppose entities controlled by liberal democratic governments from purchasing a controlling stake in an Australian company. Two-thirds of Australians say they would oppose such a purchase from an entity controlled by the Japanese government (68%), the government of a European Union member (67%), and the United States government (66%). The lowest level of opposition is expressed towards an entity controlled by the government of the United Kingdom (58%). The United States, United Kingdom, Belgium and Japan are the top four sources of foreign investment in Australia.