This article, which continues an annual series, describes the main changes in external assets and liabilities recorded during 1983. It focuses first on the relationship between the buildup of the United Kingdom's net external assets since the mid-seventies and the net flow of overseas investment income-interest, profits and dividends-recorded in the current account, suggesting that the latter considerably understates the overall return. The linkages between changes in net external assets, investment abroad, and total national saving are also examined, taking account of the effects of inflation.
The external balance sheet of the United Kingdom - developments to end-1983