Below is the text of Mr Major’s written Parliamentary Answer on Balance of Payments on 14th January 1988.
Mr. Nigel Griffiths To ask the Chancellor of the Exchequer what is his latest forecast for the United Kingdom balance of payments figure for 1987 and 1988.
Mr. Major The Autumn Statement forecast was for a current deficit of £2.5 billion in 1987 and £3.5 billion in 1988.
Mr. Barry Jones To ask the Chancellor of the Exchequer if he will make a statement on the implications for the management of the economy of the current balance of payments.
Mr. Major Present and prospective United Kingdom current account deficits are relatively small as a percentage of GDP and reflect the fast growth of the United Kingdom economy relative to other major countries. The United Kingdom also has a very strong net overseas assets position. As such, the current account position should not pose any major problems. Policy will continue to safeguard against any unsustainable developments.