Economy Net foreign direct investment (FDI) earnings have fallen notably since 2011, acting to increase the current account deficit – a trend that continued in 2015.
The decline in net FDI earnings is largely a result of a fall in the value of UK earnings on FDI abroad (credits), while overseas investors' FDI earnings in the UK (debits) have remained relatively flat.
The fall in UK FDI credits is partly explained by changes in the implied rates of return on UK FDI assets, which have been falling since 2011; in contrast, returns on liabilities have been relatively more resilient.
The largest destination for UK FDI, the EU, was the main driver of the fall in UK FDI credits since 2011; FDI assets in the majority of member states were below medium-term averages in 2015.
Returns on assets held in the North Americas, the second largest destination for UK FDI, have also fallen since 2011. This article presents the results of work undertaken by the Pensions in the National Accounts team at the Office for National Statistics (ONS) to improve estimates of Defined Contribution (DC) pensions in the UK National Accounts, specifically in relation to DC pension funds. The methodology changes were discussed in an article published on 16 January 2017; this article presents the data. | 
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