TOKYO, Sep 02 (kitco.com) - Japan's economic output ran above full capacity in April-June for the first time in nearly four years, a government estimate showed, suggesting that conditions for ending its ultra-low interest rates could be falling into place.
The output gap, which measures the difference between an economy's actual and potential output, grew 0.4% in April-June to mark the first increase in 15 quarters, according to the estimate released on Friday.
The reading shows the world's third-largest economy is making a delayed but steady recovery from the COVID-19 pandemic's wounds, as the removal of anti-virus curbs and the spending of savings accumulated during the crisis underpin consumption.
A positive output gap occurs when actual output exceeds the economy's full capacity, and is considered a sign of strong demand that typically puts upward pressure on prices. ...continue reading
