The expected slowdown reflects the lower growth of both exports and domestic demand .

The strength of global demand should help to sustain euro area exports .

Given patchy global demand, rapid export growth will be difficult to achieve.

On the external side , euro area exports should continue to be supported by foreign demand .

Extra euro area export volume , foreign demand and export share ( index 1995 100 )

An income tax hike will reduce private demand (unless one believes in perfect Ricardian equivalence), including demand for other countries exports.

External demand should therefore provide ongoing support to euro area exports and investment .

On the external side , ongoing growth in global demand should support euro area exports .

As a result of sluggish foreign demand , export growth declined in comparison with the previous year .

To escape the crisis, Germany used rapid export growth especially to meet voracious Chinese demand.

A gradual recovery in exports is projected , supported by foreign demand growth , although price competitiveness is expected to weigh somewhat on exports .

As a result, the recovery in the advanced economies is not returning Chinese export demand to pre crisis levels.

Over the projection horizon , export growth is expected to continue to support economic activity on the back of the assumed continued strength in foreign demand and domestic demand should firm .

Continued strong external demand should provide ongoing support to euro area exports and investment .

Despite all the talk about the coming shift to internal demand, China remains heavily dependent on exports and external demand as major drivers of economic growth.

Over the projection horizon , the recovery in exports continues , driven by foreign demand and higher competitiveness .

Foreign demand for euro area exports has declined and domestic factors , notably very low confidence and tight financing conditions , have adversely affected domestic demand .

Weak growth in domestic demand and exports The adverse impact from high rates of inflation , the deterioration in the external environment and increased uncertainty was demonstrated by lower contributions to euro area real GDP growth from domestic demand and exports .

Wage compression saps domestic demand, while subsidizing exports, on which Germany s growth relies.

Sluggish foreign demand and the impact of the appreciation of the euro contributed to the initial fall in euro area export volumes , while the strong pick up in foreign demand in the third quarter of 2003 seems to have been the key explanatory factor behind their recovery . Overall , in the first three quarters of 2003 export volumes were slightly

The dampened GDP growth expected over the projection horizon reflects weaker export growth and subdued domestic demand .

Domestic demand led growth will be a more reliable strategy than export led growth.

While exports did indeed perform very well, Iceland s main exports are natural resources (fish and aluminum), demand for which held up well during the post 2008 global crisis.

With global demand weak, the eurozone as a whole cannot rely on exports to grow out of its debts.

Until recently, the euro also provided booming external demand in southern Europe, while China s breakneck industrial development raised demand for Germany s traditional exports.

Robust export growth , as implied by the assumption of continued strength in foreign demand , is expected to spill over gradually to domestic demand in the course of this year .

On the demand side, exchange rate devaluations made non traditional exports more competitive and helped boost demand for relatively unskilled labor.

Slower growth in many advanced economies, China, and other emerging markets will mean lower demand for US exports.

There simply is not enough import demand in the world to absorb ever growing Chinese exports.

In recent months, Mexican exports have been slowing, while domestic consumption is picking up as a source of demand.

Over the projection horizon , export growth is expected to continue to support economic activity on the back of the assumed continued strength in foreign demand .

According to OECD estimates, the relative export performance of high cost Germany increased by 10 from 2005 to 2013, while US exports grew only 1.2 faster than demand in the rest of the world.

The global recovery is expected to go on , and this should imply a continued positive impact on the demand for euro area exports .

Export growth , on the back of the assumed continued strength in foreign demand , is , over the horizon , expected to continue to support economic activity , while domestic demand should gradually strengthen .

In particular , foreign demand for euro area exports has declined , and euro area domestic activity has contracted in the face of weaker demand prospects and tighter financing conditions .

The small increase in the value of goods exports between 2001 and 2002 was associated with an increase in export volumes , in line with the recovery in foreign demand in 2002 .

Export growth , as implied by the assumption of continued strength in foreign demand , is expected over the horizon to continue to support economic activity , while domestic demand should grow at a stable pace .

The growth of euro area exports is dampened by the projected weakening of foreign demand and the past appreciation of the euro .

German exports would also benefit from a weaker euro, boosting overall economic demand in Germany.

Thereafter , following the expected rebound in world demand , export growth rates are projected to progressively return to positive figures .

Indeed, strong Chinese demand has supported its trading partners export led growth for much of the past three decades.

The global recovery is expected to proceed , and this should imply a continued positive impact on the demand for euro area exports .

The export share is derived by dividing the extra euro area export volume by foreign demand . Comparing recent developments in intra euro area and extra euro area trade volumes with the Asian crisis The seasonally adjusted volume of both extra euro area and intra euro area imports of goods grew strongly from the beginning of 1997 until mid 2000 , while that of extra euro area exports declined in the second half of 1998 before recovering strongly in 1999 .

The ongoing recovery at the global level , and its impact on the demand for euro area exports , should provide support to the euro area economy .

Euro area exports are projected to fall markedly in the first half of 2009 , reflecting the ongoing decline in foreign demand .