Two-way investment brief

Australia–Japan

At the end of 2025, investors from Japan held A$166 bn of direct investment in Australia, making it Australia’s 2nd-largest source of foreign direct investment (12.7% of the total). That stock rose 0.4% over the year and has grown 6.1% a year on average over the past decade. Australian direct investment in Japan was A$1.2 bn — the 21st-largest destination for Australian direct investment abroad. The relationship is weighted towards Japan investing in Australia (133.7× Australia’s direct investment there). Japan was Australia’s 3rd-largest two-way trading partner in 2025 (goods and services, A$96.4 bn; 7.4% of Australia’s trade). Globally, Japan was the world’s 2nd-largest source of FDI outflows in 2024 ($207 bn, World Bank).

Data (CSV)Japan global profile

Japan direct investment in Australia

A$166 bn

+0.4%vs 20242nd largest

Total Japan investment in Australia

A$286 bn

4th largest · 5.6%

Australian direct investment in Japan

A$1.2 bn

−5.3%vs 202421st largest destination

Total Australian investment in Japan

A$179 bn

Levels at 31 Dec 2025

Trend

Direct investment in both directions

Direct investment levels, Australia–Japan

Japan in Australia
Australia in Japan

Source: ABS, International Investment Position, Australia: Supplementary Statistics (5352.0).

Japan’s investment in Australia by type

Direct investment
Portfolio investment
Other investment

Source: ABS, International Investment Position, Australia: Supplementary Statistics (5352.0).

Annual direct investment flows

Net transactions during the year; negative = net disinvestment

Japan → Australia
Australia → Japan

Source: ABS, International Investment Position, Australia: Supplementary Statistics (5352.0).

Trade relationship

Australia–Japan trade

Investment and trade move together: the partners that invest most in Australia are usually major trading partners too. Goods trade is recorded monthly (latest: July 2026); services annually.

Two-way trade, 2025

A$96.4 bn

3rd largest partner · 7.4%

Goods exports to Japan, 2025

A$60.8 bn

12 months to July 2026: A$59.0 bn

Goods imports from Japan, 2025

A$24.5 bn

12 months to July 2026: A$24.9 bn

Services trade, 2025

A$11.2 bn

Exports A$3.3 bn · imports A$7.9 bn

Goods trade

Calendar years, A$ (ABS merchandise trade)

Exports to Japan
Imports from Japan

Source: ABS, International Merchandise Trade (MERCH_EXP / MERCH_IMP), summed to calendar years.

Services trade

Calendar years, A$ (ABS international trade in services by country)

Exports to Japan
Imports from Japan

Source: ABS, International Trade in Services by Country, calendar years.

Economic outlook

Japan’s economy

IMF World Economic Outlook	2024	2025	2026forecast	2027forecast	2028forecast
Real GDP growth	−0.2%	1.2%	0.7%	0.6%	0.6%
Inflation	2.7%	3.2%	2.2%	2.3%	2.0%
Unemployment rate	2.5%	2.5%	2.5%	2.5%	2.5%
Current account, % GDP	4.5%	4.8%	3.8%	3.9%	3.9%
Fiscal balance, % GDP	−1.7%	−1.1%	−2.0%	−2.4%	−2.9%
Government gross debt, % GDP	214.5%	206.5%	204.4%	200.1%	197.7%

Source: IMF World Economic Outlook via the IMF DataMapper API. Years from 2026 are IMF projections; recent years may be estimates and are revised in each WEO round (April and October).

2025 at a glance

New FDI from Japan: A$5.6 bn
New Australian FDI in Japan: A$144 m
Direct investment income paid to investors: A$10.1 bn
Direct investment income earned by Australians: A$148 m

Japan globally (World Bank)

FDI outflows, 2024: $207 bn · 2nd
FDI inflows, 2025: $45.8 bn
GDP, 2025: $4.44 tn
Region · income: East Asia & Pacific · High income

Regulatory openness (OECD FDIRRI)

OECD index data loading — see FDI openness

Sources: ABS, International Investment Position, Australia: Supplementary Statistics (cat. 5352.0), 2025 release, released 2026-05-06 — levels at 31 December and calendar-year flows and income, A$ millions, immediate counterparty basis (investment routed via third economies is attributed to the intermediate economy). World Bank WDI (US$). OECD FDI Regulatory Restrictiveness Index. np = not published for confidentiality; included in totalsPrepared independently by FDIstats from public statistics; not an Australian Government publication and not investment advice. For foreign investment rules, see the Treasury and FIRB.