Japan output exceeds capacity the most in 9 years


Steady growth: A labourer works at a port in Tokyo. Japan’s economy expanded at an annualised 2.5 in the second quarter. — Reuters

TOKYO: Japan’s economy saw output exceed full capacity by the most in nine years in the April-June quarter, a Bank of Japan (BoJ) estimate showed, a positive sign for the central bank as it seeks to accelerate inflation to its elusive 2% target.

The output gap, which measures the difference between an economy’s actual and potential output, stood at plus 1.22% in April-June, staying in positive territory for the third straight quarter, the BoJ estimate showed.

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