Other contributory factors were high domestic liquidity and low, albeit gently rising, interest rates, which enhanced domestic demand expansion.

Second, the Chinese production mix does not correspond to domestic demand, and investment in long products has outpaced demand growth.

However, the rapid expansion in domestic demand resulted in remarkable trade deficits.

The standard way to buffer the effects of austerity is to marry domestic cuts to devaluation of the currency. Devaluation renders exports more competitive, thus substituting external demand for the domestic demand that is being compressed.

To enhance domestic demand, Asia, including China, must reallocate resources and structurally transform the economy. Reinforcing social safety nets, broadening and deepening financial markets, and supporting small and medium size enterprises would also strengthen domestic demand.

Expansion in domestic demand resulted in an increase of 22 per cent in imports.

It also means getting the balance between domestic and external demand right, and appreciating the sensitivity of medium and long term growth to the composition (and size) of domestic aggregate demand. Against this background, monetary policymakers must be cautious, because low interest rates can shift the growth model back toward leverage and domestic consumer demand, stalling the structural shift to the tradable side that is underway.

Accumulating excessive debt usually entails moving some part of domestic aggregate demand forward in time, so the exit from that debt must include more savings and diminished demand. The negative shock adversely impacts the non tradable sector, which is large (roughly two thirds of an advanced economy) and wholly dependent on domestic demand.

As China satisfied its demand for safe assets, it turned to riskier foreign investments. It began rebalancing its economy from saving to consumption and from exports to domestic demand.

Economically, Japan enjoys a strong production capacity, but its domestic market is relatively limited. In particular, the domestic demand is relatively weak in the context of aging population.

Oil windfalls alone are not necessarily responsible for domestic demand, since oil revenue can migrate into foreign asset accumulation.

In the short run, the non tradable sector is, by definition, subject to domestic demand constraints. A shortfall in non tradable demand inevitably limits growth on that side of the economy.

For the energy sector, the common variables used to develop scenarios were population growth, demand, and gross domestic product (GDP).

The growth in domestic investments would not only enhance national wealth, but would also spur the demand for foreign capital and technology in an escalating, mutually reinforcing manner that makes investments demand driven.

It is a challenge for oil exporters among the ESCWA member countries to combine sustainable domestic demand creation with economic diversification.

Domestic demand led growth will be a more reliable strategy than export led growth. That means that countries with a large domestic market and a prosperous middle class will have an important advantage.

New capacity is mainly planned in developing countries and countries in transition with relatively low production costs and rapidly growing domestic demand.

Continuing economic diversification policies have made it possible for the Gulf Cooperation Council countries to channel oil gains into expanding domestic demand.

Growth also accelerated in New Zealand while remaining substantially unchanged in Australia in 2004, supported by buoyant domestic demand and high commodity prices.

It has three primary objectives to identify potential demand among TNCs, to upgrade potential domestic business partners, and to match and monitor operations.

Although the role of monetary policy in demand management is limited when a national currency is pegged to a currency such as the dollar, its indirect effect of creating healthy domestic demand could be observed in 2004.

Moreover, the use of wood by Africa s growing population is causing increasingly rapid deforestation in many countries. There is significant potential domestic demand for coal briquettes to replace wood for cooking and domestic and industrial heating.

Though the US is finally emerging from an extended period in which potential output exceeded demand, high unemployment continues to suppress demand in Europe. One of the main casualties is the tradable sector in China, where domestic demand remains inadequate to cover the shortfall and prevent a slowdown in GDP growth.

Only a few developing countries, such as China and India, have been able to rely on domestic demand for the distribution of local cultural products.

Recent domestic demand expansion in Lebanon is not likely to be sustained at the pace of 2004, especially after the more recent loss of confidence.

But, as industrial countries, beset by fiscal, sovereign debt, and banking problems, slowed once again, the fix for emerging markets turned out to be only temporary. To offset the collapse in demand from industrial countries, they had stimulated domestic demand.

When the Argentine economy imploded in 2001, citizens lost their jobs and firms lost their access to credit, causing domestic demand to collapse. Output fell sharply.

The US is gradually transferring resources from creditors to debtors through financial repression. And Germany is slowly acquiescing to a prudent relative expansion in domestic demand.

In general, growth was broadly based, supported by robust export growth and higher commodity prices as well as strong domestic demand driven by low interest rates.

Economic growth is expected to moderate in 2005 in all three countries if the external environment weakens and uncertainty remains about the sustainability of domestic demand.

However, it will be difficult for Yemen to sustain the present growth of domestic demand because of its decreasing oil production and weak non oil exports.

What China really needs is a truly independent monetary policy oriented to domestic objectives. This would enable the PBC to manage domestic demand by allowing interest rates to rise in order to rein in credit growth and deter reckless investment.

Apart from domestic clients, there is some percent of foreigners (employees of numerous international governmental and non governmental organizations) who are creating demand on the sex market.

This could involve a combination of targeting the sanitation needs of the poor and increasing support for hygiene education, which can leverage domestic sanitation demand and investment.

First, Kicillof attributed Argentina s rapid economic growth in the years between its 2001 debt default and the 2008 global financial crisis to a Keynesian reflation of domestic aggregate demand. Keynes made a tremendous intellectual contribution in showing that supply in a market economy does not necessarily create its own demand, and that demand shortfalls can cause avoidable recessions.

This convergence will contribute to more sustainable economic growth, with Asia s economies rebalancing toward domestic demand, especially household consumption, and thereby becoming less vulnerable to external shocks. Given the decline in export demand since the global economic crisis, this shift could not be timelier.

Reducing dependence on external demand for example, by promoting private sector investment and encouraging household expenditure is crucial. Supply side policies that promote small and medium size enterprises and service industries accommodating domestic demand are also critical to ensuring more inclusive and sustainable growth.

But how could such a situation apply to Latin America, where GDP growth is faster, interest rates are higher, and domestic demand is stronger than in the US?

In fact, its weak domestic demand has dampened growth elsewhere. As a result, German banks and taxpayers are less likely to recover their bad loans to southern Europe.

As China rebalances toward a growth model that draws greater support from domestic demand, Washington should stop ranting about the renminbi and start focusing on the opportunities that this bonanza will create. That means emphasizing US companies access to China s domestic goods and services markets.

The combination of high oil prices and production, low interest rates, ample liquidity in both public and private sectors and associated domestic demand expansion gave rise to strong growth.

The expected increase in exports will sustain domestic demand in both countries, and the manageable level of inflation that is predicted may sustain consumer confidence, thereby gradually increasing investment.

But, for individual economies, relative productivity versus income levels determines the share of global tradable aggregate demand that is accessible. Unlike the non tradable side of the economy, the domestic component of global tradable demand is not an absolute constraint on growth nor is the rate of growth of global tradable demand an absolute constraint, given the possibility of increasing share.

The Rome Statute of the International Criminal Court is addressed to a new demand for accountability for the most serious crimes when that cannot be achieved within domestic justice systems.

As the main driver of Chinese growth shifts from external to domestic demand, who could benefit more than Japanese exporters? China is already Japan s largest export market, leaving it ideally situated to capture additional market share in the coming surge of Chinese demand for consumer products and services.