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The Chancellor, George Osborne, blames the eurozone crisis, pointing out that an inherently flawed single currency project and political dithering by Continental politicians have undermined demand for our exports and harmed our big banks.
A weak economy in the runup to Christmas has exacerbated the woes of retailers struggling with business models that have been overwhelmed by technological changes such as the explosion in camera phones, which destabilised Jessops, and the explosion in internet downloading which undermined demand for CDs and DVDs at HMV.
The lack of protection from financial risk undermined demand, health insurance coverage was minimal and most payments were out of pocket.
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She said: "No refund overwhelmingly undermines demand.
Others noted that the slowdown in the housing market might raise the household saving rate, undermining demand.
But with a real estate slowdown in China undermining demand for steel, the annual growth rate of Chinese iron ore imports has abruptly slowed since October.
The rising value of the yen threatened to undermine demand for Japanese exports at the same time that a series of disasters has damaged the domestic economy.
… There is some concern that fiscal consolidation, a smaller public sector and more flexible labour markets could undermine demand in these countries in the short term.
Stern agreed and said the best way to undermine demand for fossil fuels would be to expose people to the proper price through taxing carbon and ending subsidies.
"More generally, we have been arguing for some time that these prices would soon reach danger levels that would undermine demand and contribute, in time, to sharp falls," Capital Economics said in a report.
Either situation risks choking off growth in Europe and threatens the stability of the Continent's banks, which would further undermine demand and business confidence in the United States and around the world.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com