Wednesday, March 17, 2010

2009 4Q Output Gap Deeper than expected - Japan still in Deflation

March 15 - Japan's output gap, a gauge of price pressures, for Q4 2009 stood at minus 6.4 percent nudging towards the record minus 8.0 percent seen in Q1 2009 amid the financial crisis.

It was the seventh straight quarter of negative readings.

The output gap measures how much gross domestic product deviates from potential GDP, or the volume of activity when the economy is running at full capacity. A negative reading means supply capacity is ahead of demand, leading to deflationary pressure.


http://www.reuters.com/article/idUSTOE62E06020100315?type=usDollarRpt

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