Showing posts with label direct investment. Show all posts
Showing posts with label direct investment. Show all posts
Friday, 7 December 2012
UK FDI Continues To Increase
Companies from the UK have continued to increase their net investment overseas to give the highest figure since 2008 for 2011.
Inward investment flows to the UK however continued to fall to reach £31.9bn the smallest since 2004. Outward and inward investment positions increased to reach record highs of £1098.2bn and £766.2bn respectively in 2001.
Net earnings from outward investment reached £101.6bn the highest since records began (1958). Net earnings from direct investment are recovering from the falls of 2008. Earnings reached £37.6bn in 2010 and £43.6bn in 2011. Net investment overseas is possibly a reflection of strong growth in emerging markets like China and India.
Tuesday, 13 July 2010
Trade In Services Surplus Slightly Down
The Balance of Payments bulletin from the ONS for the first quarter of 2010 reported a current account deficit of £9.6bn as compared with a current account surplus of £0.5bn in Q4 2009. It is mainly due to a lower surplus on income, from £8.1bn to £3.8bn, and an increase of £1bn in deficit on current transfers, an increase of £0.5bn in trade in goods and a lower surplus on trade in services of £0.5bn to £12.5bn. The current account balance is equivalent to -2.7% of GDP.
The deficit in trade in goods and services equals -2.5% of GDP and the surplus on income is 1.1% of GDP. Trade in goods is in deficit by £21.7bn. Exports went up by £1.6bn and imports by £2.2bn. The semi-manufactured goods trade deficit increased by £0.8bn to £1.6bn and finished manufactured goods increased their deficit by £0.2bn to £13.5bn. The deficit in trade in oil narrowed by £0.4bn. The trade deficit in food, beverages and tobacco decreased by £0.3bn to £4.2bn.
The surplus on trade in services was £12.5bn, sightly lower than Q4 2009. Exports of services fell by £0.7bn to £39.1bn mainly due to a fall in the export of financial services, royalties and license fees and construction services. Imports fell by £0.2bn due to decreases in government services and construction services. These were partially offset by an increase in the import of financial services of £0.3bn.
The surplus on income fell to £3.8bn from £11.9bn in the previous quarter. Income credits were £41.5bn due to increased earnings on direct investment abroad. Income debits increased by £8.2bn to £37.6bn due to earnings on increased direct investment in the UK. Portfolio investment in the UK earnings increased by £1bn from £2.4bn to £3.4bn. UK earnings on portfolio investment abroad fell by £0.1bn to £11.6bn. The compensation of employees was £0.2bn. The surplus on direct investment income was down £6.6bn to £10bn. Earnings on direct investment abroad were £22bn due to monetary financial institutions going to profit from loss and increased earnings by financial intermediaries. Foreign earnings on direct investment in the UK increased by £7.7bn to £11.9bn. Foreign earnings on portfolio investment in the UK rose by £1bn to £15.1bn. Income on reserve assets was £0.2bn.
The current transfers deficit increased to £4.3bn due to an increase in UK's payments to EU institutions. The capital account showed an increase of £0.3bn to leave a surplus of £1.2bn.
The deficit in trade in goods and services equals -2.5% of GDP and the surplus on income is 1.1% of GDP. Trade in goods is in deficit by £21.7bn. Exports went up by £1.6bn and imports by £2.2bn. The semi-manufactured goods trade deficit increased by £0.8bn to £1.6bn and finished manufactured goods increased their deficit by £0.2bn to £13.5bn. The deficit in trade in oil narrowed by £0.4bn. The trade deficit in food, beverages and tobacco decreased by £0.3bn to £4.2bn.
The surplus on trade in services was £12.5bn, sightly lower than Q4 2009. Exports of services fell by £0.7bn to £39.1bn mainly due to a fall in the export of financial services, royalties and license fees and construction services. Imports fell by £0.2bn due to decreases in government services and construction services. These were partially offset by an increase in the import of financial services of £0.3bn.
The surplus on income fell to £3.8bn from £11.9bn in the previous quarter. Income credits were £41.5bn due to increased earnings on direct investment abroad. Income debits increased by £8.2bn to £37.6bn due to earnings on increased direct investment in the UK. Portfolio investment in the UK earnings increased by £1bn from £2.4bn to £3.4bn. UK earnings on portfolio investment abroad fell by £0.1bn to £11.6bn. The compensation of employees was £0.2bn. The surplus on direct investment income was down £6.6bn to £10bn. Earnings on direct investment abroad were £22bn due to monetary financial institutions going to profit from loss and increased earnings by financial intermediaries. Foreign earnings on direct investment in the UK increased by £7.7bn to £11.9bn. Foreign earnings on portfolio investment in the UK rose by £1bn to £15.1bn. Income on reserve assets was £0.2bn.
The current transfers deficit increased to £4.3bn due to an increase in UK's payments to EU institutions. The capital account showed an increase of £0.3bn to leave a surplus of £1.2bn.
Wednesday, 31 March 2010
Current Account Deficit Cut By £1.6bn
The seasonally adjusted current account deficit for Q4 2009 was £1.7bn equivalent to -0.5% GDP, compared with Q3 revised £5.9bn (-1.7%). The deficit on trade in goods and services was -£8.6bn or -2.5% of GDP, and -2.2% in previous quarter. The surplus on income is 2.9% of GDP compared with 1.5% in Q3.
In Q4 there was a deficit of £8.2bn with EU compared with £3.9bn Q3. The decrease in deficit was mainly due to higher surpluses on income and trade in services with a lower deficit on current transfers partly offset by an increase in deficit on trade in goods. The current account with non-EU countries shows a surplus of £6.5bn compared with £2.1bn in the previous quarter. The change is due to a surplus on income increase of £5bn to £10.3bn, the surplus on trade in services increased by £0.3bn to £12.4bn and the deficit on current transfers decreased by £0.2bn to £3.3bn due to a fall in debits from UK payments to EU institutions, though these statistics can be erratic. The annual deficit on current transfers was £14.6bn in 2009 an increase of £0.6bn. The deficit on trade in goods increased by £1.2bn to £21bn.
The capital account recorded a surplus of £1bn in Q4, up £0.1bn on Q3. The surplus on the capital account rose from £3.2bn in 2008 to £3.6bn in 2009. The financial account showed a net inflow of £6.1bn in Q4 compared with a net outflow of £1.4bn in Q3. There was a net disinvestment abroad of £15.3bn and a net disinvestment in the UK of £9.6bn after £16.7bn in Q3 2009. Direct investment abroad fell to £2.8bn from £4.9bn and direct investment in the UK increased by £15.1bn to £21.1bn due mainly to higher investment in equity capital. Portfolio investment abroad amounted to a net investment of £22.9bn in Q4 after £53.6bn in Q3. Total portfolio investment in the UK amounted to a net investment of £14.5bn in Q4 2009 following a net investment of £32.2bn in Q3. Financial derivatives had net settlements of £5.3bn. The capital balance was £973bn.
In 2009 current account in deficit by £18.4bn compared with £22bn in 2008. The deficit amounts to -1.3% of GDP compared with -1.5% in 2008. The deficit of trade in goods and services for 2009 is -2.3% GDP compared with -2.6% in 2008. In 2009 the UK recorded a deficit of £19.5bn with the EU, compared with £5.6bn in 2008 and there was a surplus of £1.1bn with non-EU countries after a deficit of £16.4bn in 2008.
Direct investment abroad in 2009 amounted to £11.9bn compared to £87.6bn in 2008. Direct investment in the UK in 2009 amounted to £29.3bn compared with £49.8bn in 2008. Portfolio investment abroad in 2009 was £154.4bn following a net disinvestment of £123.5bn in 2008. Investment in the UK increased to £188.3bn in 2009 from £185.8bn in 2008. Financial derivatives in 2009 reported net settlements of £14.5bn compared with £35.5bn in 2008.
Non-seasonally adjusted figures for Q4 2009 show a current balance of -£1.8bn, a capital balance of £972bn, net financial transactions of £6.15bn and net errors and omissions of -£5.32bn to balance the three accounts.
In Q4 there was a deficit of £8.2bn with EU compared with £3.9bn Q3. The decrease in deficit was mainly due to higher surpluses on income and trade in services with a lower deficit on current transfers partly offset by an increase in deficit on trade in goods. The current account with non-EU countries shows a surplus of £6.5bn compared with £2.1bn in the previous quarter. The change is due to a surplus on income increase of £5bn to £10.3bn, the surplus on trade in services increased by £0.3bn to £12.4bn and the deficit on current transfers decreased by £0.2bn to £3.3bn due to a fall in debits from UK payments to EU institutions, though these statistics can be erratic. The annual deficit on current transfers was £14.6bn in 2009 an increase of £0.6bn. The deficit on trade in goods increased by £1.2bn to £21bn.
The capital account recorded a surplus of £1bn in Q4, up £0.1bn on Q3. The surplus on the capital account rose from £3.2bn in 2008 to £3.6bn in 2009. The financial account showed a net inflow of £6.1bn in Q4 compared with a net outflow of £1.4bn in Q3. There was a net disinvestment abroad of £15.3bn and a net disinvestment in the UK of £9.6bn after £16.7bn in Q3 2009. Direct investment abroad fell to £2.8bn from £4.9bn and direct investment in the UK increased by £15.1bn to £21.1bn due mainly to higher investment in equity capital. Portfolio investment abroad amounted to a net investment of £22.9bn in Q4 after £53.6bn in Q3. Total portfolio investment in the UK amounted to a net investment of £14.5bn in Q4 2009 following a net investment of £32.2bn in Q3. Financial derivatives had net settlements of £5.3bn. The capital balance was £973bn.
In 2009 current account in deficit by £18.4bn compared with £22bn in 2008. The deficit amounts to -1.3% of GDP compared with -1.5% in 2008. The deficit of trade in goods and services for 2009 is -2.3% GDP compared with -2.6% in 2008. In 2009 the UK recorded a deficit of £19.5bn with the EU, compared with £5.6bn in 2008 and there was a surplus of £1.1bn with non-EU countries after a deficit of £16.4bn in 2008.
Direct investment abroad in 2009 amounted to £11.9bn compared to £87.6bn in 2008. Direct investment in the UK in 2009 amounted to £29.3bn compared with £49.8bn in 2008. Portfolio investment abroad in 2009 was £154.4bn following a net disinvestment of £123.5bn in 2008. Investment in the UK increased to £188.3bn in 2009 from £185.8bn in 2008. Financial derivatives in 2009 reported net settlements of £14.5bn compared with £35.5bn in 2008.
Non-seasonally adjusted figures for Q4 2009 show a current balance of -£1.8bn, a capital balance of £972bn, net financial transactions of £6.15bn and net errors and omissions of -£5.32bn to balance the three accounts.
Wednesday, 1 July 2009
A Narrowing In The Balance Of Payments
The ONS bulletin on the balance of payments showed a net current account deficit of £8.5bn from £8.8bn in the previous quarter. The income surplus increased by £3.4bn to £3.5bn, the deficit on trade in goods fell by £1.5bn to £20.8bn and the deficit on trade on current transfers increased by £1bn to £3.8bn. These were partly offset by the surplus on trade in services which fell £3.7bn to £12.6bn. The current account balance showed a £25.1bn deficit, or -1.7% of GDP in 2008 compared to -2.5% now. The deficit on trade in goods narrowed from £22.3bn to £20.8bn by £0.2bn in oil, fuels other than oil by £0.2bn and finished manufactured goods by £1bn. The surplus on trade in services was £12.6bn. It reflects a decrease in financial and insurance services. Direct investment income was up £3.7bn to £9.8bn, but portfolio investment showed a deficit of £1.4bn. The capital account was almost unchanged with a surplus of £0.8bn in Q1 2009. Net direct investment abroad was £32.4bn and in the UK £34.2bn. Net portfolio investment abroad was £38.3bn and in the UK £122.2bn, the highest on record. Debt securities accounted for £96.9bn in the first quarter.
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