Domestic demand has grown rapidly in emerging Asia for much of the past 30 years. As a consequence, its contribution to annual global growth has gradually increased, rising from ¼ percentage point in the early 1980s to almost 1 percentage point in recent years. Most of this increased contribution reflects strong growth in China and India, with around half arising from the expansion of household consumption and half from the increase in investment in these countries. Looking ahead, the contribution of domestic demand in emerging Asia to global growth is likely to continue to rise, underpinning Australia's resource export prospects.
|Number of pages||4|
|Journal||Reserve Bank of Australia. Bulletin|
|Publication status||Published - Mar 2011|