net exports

Net exports represent the difference between how much we export and import.

NET EXPORTS Not long ago, it looked as if the rest of the world would save the United States economy from a deep downturn.

The news that did not make the news is that the growth contribution of domestic demand in Germany was larger that of net exports.

Over the past two years, the expansion in net exports generated close to a quarter of the growth of GDP.

In most Asian economies falling domestic demand was more important than the drop in net exports in explaining the collapse in GDP growth.

Chinese WMP net exports are negatively affected by the milk scandal for the next couple of years, but China resumes exporting in 2012.

For countries with large current account deficits, much of this growth will have to come from net exports.

Looking ahead, the U. K. economy is facing a major rebalancing away from private and public consumption and towards net exports.

If fiscal contraction is to be expansionary, net exports must increase and private spending must rise, or private savings fall.

Most of the slowdown in regional economic growth so far stems not from a fall in net exports but from weaker domestic demand.

The May decline was accounted for by inventory investment, while the June decline was more than doubly accounted for by net exports.

A more competitive dollar will raise net exports, reducing the probability that the current weakness will turn into an outright recession.

A trade deficit means net exports are negative, and that directly reduces both the GDP growth rate and rate of job creation.

State and local budget crunches will continue to be a drag, as will net exports, so long as America's economy remains unbalanced.

To frame their thinking, economists use the definition of gross domestic product as the sum of consumption, investment and net exports.

Yet in 2008 the fall in net exports (exports minus imports) accounted for less than half of its slowdown.

Chinese shares fell back on the latest trade figures, following signs that net exports - a key driver of Chinese growth - may be flagging.

The contribution from net exports will have been negative, as suggested by narrowing trade surpluses.

Investment and net exports generated close to three-quarters of China's incremental demand in recent years.

Besides consumption spending and business fixed investment, net exports are a third source of demand for domestic production.

The upward revision followed higher net exports, as well as support from consumer and government spending.

Nevertheless, net exports will remain the biggest burden on growth throughout most of 2009, as a result of persistently weak global demand.

Mr Cheng warned that the strength of domestic consumption could not compensate for the weakness of investment and net exports.

Over the last three years, real net exports have increased by about $250 billion.

Growth from that point increasingly relied on net exports and state-led investment and decreasingly on household consumption.

In other words, growth in net exports has to be part of the solution to this crisis for deficit countries, such as the US and UK.

And if almost all of the slowdown comes from net exports, while domestic spending remains robust, then the whole world can cheer, too.

Net exports of goods and services, consisting of the amount of exports minus the amount of imports .

so while booming imports will prevent a narrowing in the trade gap , the drag on growth from net exports may be fading.

The depreciation of sterling would also stimulate net exports, raising confidence in fiscal prospects.

Investment is one component of aggregate demand, along with domestic consumption and net exports.

Without sustained domestic demand and higher net exports, the US recovery may weaken once the fiscal stimulus is phased out.

a. Assume that U. S. products did decline in relative quality during the 1980s. How did this affect net exports at any given exchange rate?

Net exports to other nations, especially the U. S. and Europe.

The Commission forecasts that the fall in net exports will account for three-fifths of its 5. 4 per cent economic shrinkage this year.

The rapid past expansion of gross and net exports is not going to return.

On average, the dollar should depreciate against Asian currencies to encourage more U. S. net exports to Asia.

Net exports contributed nearly half of Japan's overall growth in that period, its longest expansion since World War Two.

Lower consumption in the US would be offset by higher US net exports.

By definition, economic growth is driven by consumption, investment and net exports.

Alternatively, there could be a surge in net exports.

Indeed, as much as 70 per cent of the increase in Germany's GDP between 1999 and 2007 was accounted for by the increase in its net exports.

The key is to expand the net exports of those trade deficit countries to the world outside the eurozone.

Goolsbee said increases in net exports, fixed investment and federal government spending contributed to the second quarter growth.

Third, government consumption and net exports had only ignorable impacts on business fluctuations.

Unfortunately, the sensible goal of rebalancing towards net exports can lead to dubious policy prescriptions.

The net exports surplus expanded YoY again in real terms (net of the price effect), contributing 0. 3 percentage points to real GDP growth.

Net exports are not expected to contribute anything to Chinese growth this year.

These countries will not be eager to appreciate against the dollar, and so allow for larger US net exports.

Thus, the expansion in net exports that has recently been so vital for US growth must continue (see chart).

Spending on consumption, investment and net exports all increase.

Germany does not need further competitiveness gains or a pull from net exports.

An alternative measure of the importance of exports is the change in net exports in real terms.

Thus, China needs to radically change its growth model from net exports and investment to reduced saving and more consumption.

It is inconsistent for every country to simultaneously count on net exports to generate growth.

Larger US net exports will replace US consumption and help sustain the US recovery.

Without the boost from net exports, real GDP would have fallen since the third quarter of 2007.

He also argues that the role of exports has been exaggerated, with net exports accounting for only 2 per cent of China's recent growth.

In 2007, net exports contributed almost three percentage points of the 12% increase in GDP.

Dragonomics forecasts that in 2008 the contribution of net exports to China's growth will shrink by half.

The more important part of the story is actually not about net exports.

Even so, UBS, a bank, forecasts that in 2009 net exports will be a negative drag on GDP growth.

I am saying that part of Germany's net exports were illusory, paid for by excessive borrowing, often financed by Germans.

Meanwhile US data showed that its recent surge in net exports faltered in November, when the US trade deficit hit a 14-month high.

Net exports were also a drag, as growth in imports outpaced exports.

Here's the data on net exports as a share of GDP, which is what matters for overall demand.

In contrast, net exports accounted for half of all growth in Singapore and Taiwan.

Between the fourth quarter of 2006 and the fourth quarter of 2007, the improvement in US net exports generated 30 per cent of US growth.

A rise in net exports is essential for sustained recovery.

Net exports added slightly to growth, thanks mostly to a big drop in imports.

Net Exports The value of total exports minus the value of total imports.

This discussion focuses on net exports.

The Chinese authorities had no reason to try to lower the surplus of savings at that time: it went into net exports.

Net exports contributed positively to growth for the first time all year.

Higher consumption in China would be offset by lower Chinese net exports.

But since 2005, net exports have contributed more than 20% of growth (see right-hand chart).

China's net exports of steel rose 20% in the first half of the year, according to J. P. Morgan Chase.

c. What happens to the quantity of net exports?

Net exports contributed negatively to overall GDP in 2003.

Net exports accounted for over one-third of GDP growth in the five years to 2007.

So the US needs strong growth of net exports.

The latest forecast from UBS China economist Wang Tao envisages a 1. 1 percentage point drag on GDP growth from net exports in 2012.

The World Bank's latest quarterly shows that net exports contributed over 3% to Chinese growth in Q1.

"The government departments are backtracking because of the slowdown in net exports, " said one economist.

At the level of an entire country that means a big rise in net exports.

Net exports subtracted 1. 2 percentage points from growth.

The decline in net exports lopped off 3. 6 percentage points.

The undervalued Chinese real exchange rate generated a contribution of net exports of 5. 6 per cent of GDP between 2006 and 2008.

Net exports worth a further 0. 5% of GDP are typically chalked up by related services, such as law, accountancy and consulting.

Consequently, despite a reduction of net exports of 3. 9 per cent of GDP, China achieved 8. 7 per cent economic growth.

Between 2004 and 2007 net exports accounted for 60% of growth.

Net exports subtracted 4. 2 percentage points from growth in 2009, the first time net exports contracted since 1999.

China's growth last year was engineered by substituting net exports with state-led investment.

Between 2002 and 2007 the increase in net exports contributed only 15% of real GDP growth in China.

As a result, net exports of goods and services generated a quarter of additional demand last year and will generate another fifth this year.

For a graphic on the contributions of investment, consumption and net exports to GDP, double-click on: here

First introduced the relationship between taxation and fixed assets investment, consumption and net exports;

Policymakers must bear four points in mind: first, they must promote the essential strengthening of investment and net exports;