Foriegn Debt

Net foreign debt, the net sum of debt liabilities and debt assets, consists of 2 sectors, the public sector, such as government, public financial and non financial corporations, and the private sector, such as private financial and non financial corporations.

At the end of the 2000 financial year, the net foreign debt totalled $277804bn, the Public sector, contributed 6% ($18569bn) to the net foreign debt. The private sector, contributed 94% ($259235bn) to the net foreign debt. As you can see in the graph below, this figure has been rapidly growing throughout Australia’s history, whereas the public sector

The foreign or external debt is the amount of money that Australian residents, both public and private, owe to the rest of the world. At present we have $362bn in foreign debt with the public sector owning only 3.7% and the other 96.3% belonging to the private sector. We will always have foreign debt because we will always have a CAD, we will always want more and we will never be able to meet the demand domestically. Foreign debt can be costly and beneficial and it is this that the Economists and politicians use to make decisions in the interest of our country.

*Note- figures below are in current AUD

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