BOJ Recovery Picture at Odds With Cabinet Data: Chart of the Day
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Central bank Governor Haruhiko Kuroda says one sign of Japan’s recovery under Abenomics is that a gap between the nation’s actual and potential growth rates has come close to “zero.” A government gauge gives a less optimistic picture.
The CHART OF THE DAY compares indexes of how much the economy is picking up, one from the Bank of Japan and the other from the Cabinet Office. They both depict the so-called output gap, the difference between actual growth and the estimated level where an economy is neither under-performing nor starting to overheat.