Domestic demand (InternalDemand) is an economic term, which refers to the internal demand of a country or region, including consumption demand, investment demand and government demand. Domestic demand is one of the important driving forces for economic growth, and usually together with external demand (foreign trade) constitute the total demand of a country or region.
Domestic demand includes the following aspects:
1. Consumer demand: refers to the demand for products and services by domestic individuals and families, including daily necessities, automobiles, home appliances, education, medical and other services . Consumption demand is the most important component of domestic demand and plays a significant role in driving economic growth.
2. Investment demand: refers to the investment demand of domestic enterprises for fixed assets, including new factories, purchase of equipment, technology research and development, etc. Investment demand plays an important role in promoting industrial structural adjustment and improving production efficiency.
3. Government demand: refers to the government’s demand for public goods and services, including infrastructure construction, national defense, education, medical care, social security, etc. Government demand is of great significance to stabilizing the economy and improving people's livelihood.
The size of domestic demand is affected by many factors, such as residents’ income level, consumption tendency, investment willingness, government policies, etc. Measures to expand domestic demand usually include increasing residents' income, improving income distribution, encouraging consumption, increasing investment, expanding government spending, etc.
In general, domestic demand is an important manifestation of the economic vitality of a country or region and has an important impact on economic growth, employment, people's livelihood and other aspects. Promoting the expansion and optimization of domestic demand is of great significance to improving the quality of economic development and people's living standards.