Britain: An official handbook > 1993

OVERSEAS TRADE
Table 20.6: Summary of Transactions in External Assets" and Liabilities^
1989-91 £ million
1989 1990 1991
Overseas direct investment in Britain
Overseas portfolio investment in Britain
British direct investment overseas
British portfolio investment overseas
Borrowing from overseas
Deposits and lending overseas
Official reserves"
Other external liabilities of general government
Other external assets of general government
18,567
14,603
-21,515
-35,486
72,750
-39,419
5,440
2,252
-873
18,634
5,276
-9,553
-15,844
65,400
-52,999
-79
1,281
-1,025
12,045
16,627
-10,261
-30,908
-396
23,944
-2,662
-2,246
-894
Total
19,259
11,091
5,249
Source: United Kingdom Balance of Payments 1991 Edition.
a Increase / decrease +
^Increase +/decrease -
Note: Differences between totals and the sums of their component parts are due to rounding.
Direct investment in Britain by overseas
residents amounted to £127,000 million at
the end of 1991 and portfolio investment to
£131,200 million. At the end of 1989,
investment from developed countries
accounted for 95 per cent of overseas direct
investment in Britain: 39 per cent originated
in the United States and 28 per cent in the
European Community. During 1989, 41 per
cent of net direct inward investment was in
manufacturing, 12 per cent was in energy and
30 per cent was in financial services.
Another type of overseas transaction is
company cross-border acquisitions and
mergers carried out by British companies. In
1991 these were valued at £8,300 million,
while the corresponding figure for operations
in Britain by overseas companies was £6,600
million. The European Community
accounted for 41 per cent of the value of
acquisitions and mergers by British
companies and the United States for 39 per
cent. The European Community also
accounted for 27 per cent of the value of
acquisitions and mergers by overseas
companies.
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