Output Gap


Definition


"The output gap is an economic measure of the difference between the actual output of an economy and its potential output. Potential output is the maximum amount of goods and services an economy can turn out when it is most efficient—that is, at full capacity. Often, potential output is referred to as the production capacity of the economy.­" IMF, Washington


Recommended sources


DSI's Global Economic Statistics, provide output gap and potential GDP calculated by DSI (basing on IMF and OECD series)


Related ATS topics


Potential Gross Domestic Product


References


What is the output gap, Sarwat Jahan and Ahmed Saber Mahmud, in: Finance & Development, September 2013, p. 38-39


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