10).
359
Economic affairs
24 International trade and investment
Table 24.1 UK balance of payments summary1
£ million
1991
1996
1999
2000
2001
Current account
Trade in goods and services
–6,121
–4,125
–15,578
–18,488
–22,461
Income
–3,307
1,204
2,536
9,312
9,162
Current transfers
–1,231
–5,788
–6,687
–10,032
–7,154
Current balance
–10,659
–8,709
–19,729
–19,208
–20,453
Capital account
290
736
943
1,823
1,499
Financial account
5,269
5,515
19,735
13,993
19,291
Net errors and omissions2
5,100
2,458
–949
3,392
–337
1 Balance of payments basis.
2 Amount necessary to bring the sum of all balance of payments entries to zero.
Source: ONS Balance of Payments
Table 24.2 UK external trade in goods and services1
£ million
1991
1996
1999
2000
2001
Exports of goods
103,939
167,196
166,166
187,936
191,644
Exports of services
32,001
55,895
70,443
77,199
76,807
Exports of goods and services
135,940
223,091
236,609
265,135
268,451
Imports of goods
114,162
180,918
193,538
218,262
225,178
Imports of services
27,899
46,298
58,649
65,361
65,734
Imports of goods and services
142,061
227,216
252,187
283,623
290,912
Balance of trade in goods
–10,223
–13,722
–27,372
–30,326
–33,534
Balance of trade in services
4,102
9,597
11,794
11,838
11,073
Balance of trade in goods and services
–6,121
–4,125
–15,578
–18,488
–22,461
1 Balance of payments basis.
Source: ONS Balance of Payments
Table 24.1 summarises the UK’s balance of
£191.6 billion and imports to £225.2 billion,
payments position over recent years. In 2001 the
giving a deficit on trade in goods of £33.5 billion,
current account was in deficit by £20.5 billion,
slightly higher than in 2000 and the largest deficit
compared with a £19.2 billion deficit in 2000. A
on record. The surplus on trade in services in
sharp widening in the deficit on goods and
2001 (£11.1 billion) compares with a £11.8 billion
services was largely offset by a reduced deficit in
surplus recorded in the previous year. Figure 24.3
current transfers. The capital account surplus fell
shows the position over the past 30 years.
from a record £1.8 billion in 2000 to £1.5 billion
in 2001.
Commodity composition of goods
UK exports of goods are dominated by
manufactures – finished manufactures and semi-
Trade in goods and services
manufactured goods – which in 2001 accounted
for the same proportion (84 per cent) of exports
Table 24.2 summarises the UK’s trade in goods
as they did in 1971. Oil exports, which had risen
and services over recent years. More detailed
as a proportion of total exports from 4 per cent in
analyses for 2001 can be found in subsequent
1971 to 21 per cent in 1984, have subsequently
tables. In 2001, UK exports of goods amounted to
declined to 8 per cent (see Table 24.4).
360
Economic affairs
24 International trade and investment
EU countries accounted for eight of the UK’s top
Figure 24.3 UK balance of payments
ten export markets in 2001 and for seven of the
in goods and services
top ten leading suppliers of goods to the UK (see
Table 24.6). The United States remained the UK’s
£ billion
largest single destination and was also its largest
20
single supplier. Two of the biggest percentage
increases in 2001 were in exports to the Irish
10
Services
Republic (which rose by over 12 per cent) and
0
imports from China (over 20 per cent).
Goods
-10
Trade in services
Trade in services covers the provision of services
-20
between UK residents and non-residents, and
transactions in goods which are not freighted out
-30
of the country in which they take place – for
example, purchases for local use by foreign forces
-40
in the UK and by UK forces abroad and purchases
1971
1976
1981
1986
1991
1996
2001
by tourists. There has been a surplus recorded for
Source: Office for National Statistics
trade in services every year since 1966, although in
2001 this was £0.8 billion lower than the record
Historically the UK was predominantly an importer
level achieved in 2000. Exports fell slightly by 0.5
of foods and basic materials. Over the last 30 years,
per cent to £76.8 billion in 2001, with imports
however, imports of manufactures have grown
rising slightly by 0.6 per cent to £65.7 billion (see
rapidly. Between 1971 and 2001 the share of
Table 24.2). There were strong surpluses in
finished manufactures in total imports rose from
business and financial services, while travel and
27 per cent to 60 per cent. The UK has not had a
transport contributed the largest deficits (see
surplus on manufactured goods since 1982. Basic
Table 24.7).