As many economists have noted, a key problem for the UK is its negative international investment position (IIP), which fuels a large part of the country's current account deficit. This is derived from the difference between total assets and liabilities of rest of the world holdings (RoW), and constitutes a net asset position of £269bn (in favour of foreigners).
Continue reading: A double deficit and a falling poundA double deficit and a falling pound
As many economists have noted, a key problem for the UK is its negative international investment position (IIP), which fuels a large part of the country’s current account deficit. This is derived from the difference between total assets and liabilities of rest of the world holdings (RoW), and constitutes a net asset position of £269bn (in favour of foreigners).