more is invested in and lent to Australia from abroad than we lend to or invest in other countries (a necessary corollary of running a current account deficit). Since the Government has little or no role in these investment flows, it is the world and Australia’s private sector players that have chosen this outcome.
Notwithstanding this consideration, some people are still troubled by the amount of portfolio investment abroad by Australian institutions and direct investment abroad by Australian companies, accusing them of turning their backs on Australia. I think the situation is a bit better than this.