The large identified deficit position on current and long-term capital account which emerged in the second half of 1959 and continued into 1961 was due to a fall in net receipts from current invisible transactions and to a deterioration in the balance of visible trade.
Net invisible receipts, which had previously helped to offset deficits on visible trade and long-term investment overseas, had dwindled from £285 million in 1958 to £59 million in 1960, owing mainly to increased government expenditure, a fall in net receipts from interest, profits and dividends, and a worsening of the shipping position.
Published on
01 September 1961
Commentary