The Saturday Economist, Special Report. In 2013, overseas investment income collapsed, the current account deficit slumped to over 4% of GDP. This happened in 1974 and 1989 when base rates were hiked to 12% and 14% to offset the deficit. Could it happen again, here are the slides, check out the report.
Uk balance of payments 1955 - message to overseas investors - things going well send more monet
1. The Saturday Economistwith Professor Milton Keynes ...........
The Saturday Economist .com
UK Balance of Payments from 1955 …
… things going well, send more money.
2. -8.0%
-7.0%
-6.0%
-5.0%
-4.0%
-3.0%
-2.0%
-1.0%
0.0%
1.0%
2.0%
1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
The Saturday Economistwith Professor Milton Keynes ...........
The Saturday Economist .com
UK Balance of Payments from 1955
“Things going well!
Send more money”
BOP:Balance:SA:Total Trade in Goods BOKI *Gross Domestic Product at market prices: Current price: YBHA
Chart 1 Balance % of GDP* - Total Trade in Goods
3. -1.0%
-0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
Chart 2 Balance % of GDP* - Total Trade in Services
The Saturday Economistwith Professor Milton Keynes ...........
The Saturday Economist .com
UK Balance of Payments from 1955
“Things going well!
Send more money”
Balance of Payments: Trade in Services: Total balance:IKBD
*Gross Domestic Product at market prices: Current price: YBHA
4. -5.0%
-4.0%
-3.0%
-2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
Chart 3 Balance % of GDP* - Total Trade in Goods & Services
The Saturday Economistwith Professor Milton Keynes ...........
The Saturday Economist .com
UK Balance of Payments from 1955
“Things going well!
Send more money”
Balance of Payments: Trade in Goods & Services: Total balance:IKBJ
*Gross Domestic Product at market prices: Current price: YBHA
5. -2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
1955 1965 1975 1985 1995 2005
Chart 4 Balance % of GDP* - Investment Income Balance
The Saturday Economistwith Professor Milton Keynes ...........
The Saturday Economist .com
UK Balance of Payments from 1955
“Things going well!
Send more money”
BoP Investment Income Balance HBOJ
*Gross Domestic Product at market prices: Current price: YBHA
6. -2.0%
-1.5%
-1.0%
-0.5%
0.0%
0.5%
1.0%
1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
Chart 5 Balance % of GDP* - Current Account Transfers
The Saturday Economistwith Professor Milton Keynes ...........
The Saturday Economist .com
UK Balance of Payments from 1955
“Things going well!
Send more money”
Current Transfers (BPM5) total balance IKBP
*Gross Domestic Product at market prices: Current price: YBHA
7. -5.0%
-4.0%
-3.0%
-2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
Chart 6 Balance % of GDP* - Current Account Balance
The Saturday Economistwith Professor Milton Keynes ...........
The Saturday Economist .com
UK Balance of Payments from 1955
“Things going well!
Send more money”
BoP Current Account Balance [HBON - HBOO] *Gross Domestic Product at market prices: Current price: YBHA
8. -3.0%
-2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
1955 1965 1975 1985 1995 2005
Chart 7 Balance % of GDP* - Capital Account
The Saturday Economistwith Professor Milton Keynes ...........
The Saturday Economist .com
UK Balance of Payments from 1955
“Things going well!
Send more money”
*Gross Domestic Product at market prices: Current price: YBHA
BoP FA total Net flows HBNT
9. The Saturday Economistwith Professor Milton Keynes ...........
The Saturday Economist .com
UK Balance of Payments from 1955
“Things going well!
Send more money”
-120,000
-90,000
-60,000
-30,000
0
30,000
1980 1990 2000 2010
BOP:Balance:SA:Total Trade in Goods BOKI
Chart 8 Balance Total Trade in Goods £ millions
10. The Saturday Economistwith Professor Milton Keynes ...........
The Saturday Economist .com
UK Balance of Payments from 1955
“Things going well!
Send more money”
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
1980 1990 2000 2010
Chart 9 Balance Total Trade in Services £ millions
Balance of Payments: Trade in Services: Total balance:IKBD
11. The Saturday Economistwith Professor Milton Keynes ...........
The Saturday Economist .com
UK Balance of Payments from 1955
“Things going well!
Send more money”
-40,000
-30,000
-20,000
-10,000
0
10,000
1980 1990 2000 2010
Chart 10 Balance Total Trade in Goods & Services £ millions
Balance of Payments: Trade in Goods & Services: Total balance:IKBJ
12. The Saturday Economistwith Professor Milton Keynes ...........
The Saturday Economist .com
UK Balance of Payments from 1955
“Things going well!
Send more money”
-20,000
-10,000
0
10,000
20,000
30,000
40,000
1980 1990 2000 2010
Chart 11 Investment Income Balance £ millions
BoP Investment Income Balance HBOJ
13. The Saturday Economistwith Professor Milton Keynes ...........
The Saturday Economist .com
UK Balance of Payments from 1955
“Things going well!
Send more money”
-30,000
-20,000
-10,000
0
10,000
1980 1990 2000 2010
Chart 12 Current Transfers £ millions
Current Transfers (BPM5) total balance IKBP
14. The Saturday Economistwith Professor Milton Keynes ...........
The Saturday Economist .com
UK Balance of Payments from 1955
“Things going well!
Send more money”
-80,000
-70,000
-60,000
-50,000
-40,000
-30,000
-20,000
-10,000
0
10,000
1980 1990 2000 2010
Chart 13 Current Account Balance £ millions
BoP Current Account Balance [HBON - HBOO]
15. The Saturday Economistwith Professor Milton Keynes ...........
The Saturday Economist .com
UK Balance of Payments from 1955
“Things going well!
Send more money”
-10,000
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
1980 1990 2000 2010
Chart 14 Capital Account Balance £ millions
BoP FA total Net flows NSA _m HBNT
16. The Saturday Economistwith Professor Milton Keynes ...........
The Saturday Economist .com
UK Balance of Payments from 1955
“Things going well!
Send more money”
Chart 15 Who owns UK Equities?
0
10
20
30
40
50
60
70
1990 1992 1994 1998 2000 2002 2004 2008 2012
Overseas UK Institutions Individuals Misc
Data from “Ownership of UK Quoted Shares 2012”
ONS September 2013
UK Institutions Insurance & Pension Funds
Unit Trusts, Investment Trusts
Other Institutions
Misc : Charities, Banks & NFIS
Charities & Public Sector
%
17. The Saturday Economistwith Professor Milton Keynes ...........
The Saturday Economist .com
UK Balance of Payments from 1955
“Things going well!
Send more money”
Chart 16 Who owns UK Gilts?
10%
20%
30%
40%
20002001200220032004200520062007200820092010201120122013
Overseas
Data from “Ownership of UK Quoted Shares 2012”
Debt Management Office Q3 2013
19. The Saturday Economistwith Professor Milton Keynes ...........
The Saturday Economist .com
UK Balance of Payments from 1955 …
… things going well, send more money.