The United Kingdom had a serious balance of payments issue during the transition from war to peace.
The United Kingdom, long considered an international commerce and industry sector leader, faced a major balance of payments issue at the conclusion of the Second World War. However, it was falling behind countries such as the United States and Germany in industrialization even earlier, resulting in the deterioration of its net foreign investment and positive current balance in the first half of the 1930s. Debts incurred from the United States and Canada during WWII further exacerbated the situation. With assistance from the European Recovery Program, the U.K. was able to take advantage of a necessary grace period that provided the country with time to adjust their balance of payments. This adjustment would be essential to not only the recovery of the United Kingdom but also to world trade.
The report contains an analysis of the United Kingdom's post-war economic conditions, balance of payments, and gold and dollar reserves.
The report discusses chief components of the external funded debt of the United Kingdom including United States credits, Canadian credits, and other debts.