BALANCE OF PAYMENTS OF OVERSEAS STERLING AREA TO END-1974
1. The latest forecast of the OSA balance of payments to the end of 1974 is summarised in Appendix Table 1. A note on each of the major OSA countries follows and a note on the domestic economy of each of the main developed countries Australia, Ireland, New Zealand and South Africa is also included.
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2. Libya's balance of payments statistics have been excluded from the following tables and paragraphs.
1972 Outturn
3.
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The reserves of the OSA (including holdings of SDRs) are estimated to have increased by more than £2,500 million in 1972. As shown in Appendix Table 2 well over half of the total increase went to the developed countries Australia accounting for over £1000 million. South Africa accounted for nearly £250 million and New Zealand for £100 million. The reserves of the Persian Gulf Sheikhdoms in the oil developers' group rose by some £500 million while the non-oil developers gained around £630 million.
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4. The increased rise in the reserves of the developed countries about £1450 million compared with some £630 million in 1971 mainly due to an improvement in the current account whereby the deficit of over £1000 million in 1971 was almost removed. A 4% fall in imports brought about mainly by controls in South Africa and the sluggish state of the Australian economy and a 19% rise in the value of exports were mainly responsible. The continued rapid inflow of identified private capital into Australia and South Africa accounted for the increase in the net inflow of long- term capital.
5. The non-oil developing countries also increased their reserves very rapidly in 1972. At nearly double the rate of the previous year they gained around £630 million. Pakistan and Bangladesh together were responsible for more than £160 million compared with Pakistan's fall of £8 million in 1971. The reserves of Singapore and Hong Kong rose by £160 million and £200 million respectively
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