Gross UK assets and liabilities are analysed in order to discern trends in holdings of different types of investment. The article emphasises the latter part of the period, which was characterised by crises in emerging markets. The external balance sheet is also considered in relation to investment income. The box on page 42 describes the recent changeover to the latest (1995) version of the European System of National and Regional Accounts and the 1993 IMF Balance of Payments Manual, Fifth Edition (BPM5).
The external balance sheet of the United Kingdom: recent developments