Whether Kuroda s assault will bolster domestic consumption and investment remains to be seen.

Rebalancing demand, from investment and exports to domestic consumption

To achieve this, China must increase domestic consumption s share of GDP.

No wonder domestic consumption cannot grow in a manner commensurate with GDP.

This ramification is highlighted by the consistently high domestic absorption (private and public consumption and investment expenditures to GDP ratio) and the allocation switch from investment to consumption.

The financial services sector, which has been the fastest growing segment of the economy, will shrink.

Much has been made of domestic consumption as a driver of Chinese growth in the future.

To be sure, China s domestic consumption is not as high as it should be, standing at 49 of GDP in 2008, with household consumption accounting for only 35 .

If Asian domestic consumption increases, for example, global economic growth will depend far less on over consumption by debt laden Americans.

For China, this puts consumption in the range of 40 45 of GDP.

So a shift to greater domestic consumption was inevitable anyway.

There are other instruments available for increasing domestic saving and reducing consumption besides the fiscal balance.

Low hanging fruit Consumption. Private consumption accounts for only about 37 of China s GDP the smallest share of any major economy.

Promotion of community management of waste.

First, the production chain must shift from export dependence toward domestic consumption.

With the financial crisis, the Chinese economy s necessary adjustment towards more domestic consumption has become far more urgent.

All of these changes will increase household consumption in both the short and long term.

Both countries external sectors have clearly been hit hard, while domestic consumption is stagnating.

During the boom, US consumption rose to more than 70 of GDP.

Today, it is private consumption in the household sector (70 of GDP) that is in trouble.

From now on, consumption must grow much faster than GDP.

At nearly 70 of GDP, consumption in the US is too high.

Half of India s growth has come from private consumption, and less than 10 from external demand by contrast, 65 of China s real GDP growth comes from exports, and only 25 from private consumption.

Rebalancing demand, from investment and exports to domestic consumption

Their net effect will be to raise consumption as a share of GDP and to reduce the national saving rate.

Enhance local deliberative and problem solving capacity

But what China really needs is a greater effort to promote domestic consumption and lower the savings rate.

But, by raising the consumption share of its GDP, China will also absorb much of its surplus saving.

Moreover, China s aging population, and its strategy of boosting domestic consumption, will negatively affect global savings.

Consumption

(e) Strengthening of human rights activities at the local and provincial levels.

Nor has domestic consumption been sufficiently expanded, leaving economic growth overly dependent on exports and foreign investment.

Natural gas is procured from Russian Gazprom (roughly three fourths of domestic consumption) and from Norwegian companies (most of the remaining one fourth).

The Board endorsed the plan to publish both preliminary and final PPPs and to publish in stages for consumption and the full GDP.

It was too heavily tilted toward tax cuts that would tend to boost saving rather than consumption.

(b) Development of four pilot projects in four selected countries aimed at promoting SCP patterns

Oil exports of most oil producing countries are expected to decline relative to their production as young populations, higher incomes, urbanization, and power shortages continue to boost domestic consumption.

Households are over indebted and must save more.

Transforming China from an export driven economy to one that relies on domestic consumption requires two fundamental reforms.

This is particularly important for poorer and smaller developing countries in which domestic consumption and investment is a poor substitute for global demand.

Consumption

Several other obstacles must nonetheless be surmounted in order to boost consumption.

What strategies, tools and actors should be involved in promoting sustainable consumption in tourism?

Official estimates put annual GDP growth at 6.5 in 2018 2022, while Peking University s Michael Pettis, for example, regards 3 4 growth as consistent with continuous rapid consumption growth and the targeted increase in consumption s share of GDP.

Its imbalances have gotten worse as well, with the investment share of GDP approaching 50 and private consumption falling below 35 of GDP.