Where did all the goods go?

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Domestic demand in the form of consumer and government spending is expected to be weak in the coming year, so economic growth will be reliant on investment and net exports.

The good news is that last year exports grew strongly: in 2010 goods exports grew by nearly, 17% the fastest rate since 1977.

This has been driven by some really stunning growth in exports to emerging economies:

Figure 1: growth in value of goods exports 2009 - 2010


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