Output gaps in developing countries

Posted: January 17, 2014 in economy
Tags: , ,

UK Only Article: 
standard article

Issue: 

Coming to an office near you

Main image: 

20140118_INC164.png

The GDP of developing countries rose by an estimated 4.8% in 2013, almost 1% below potential GDP (the output consistent with full employment and stable inflation). The difference between actual and potential growth, expressed as a percentage of potential GDP, is known as the output gap. Overall, it has narrowed and is only slightly negative, compared with the large positive output gaps of boom years before the great recession. The recent slowdown has eased excess demand pressures in some countries, notably Brazil. India faces stubbornly high inflation and a widening negative output gap. Social and political turmoil in the Middle East and north Africa continues to keep output below potential.

Article body images: 

20140118_INC164.jpg

Published: 

20140118

Source: 

The Economist Newspaper

Version: 

via Economic Crisis http://ift.tt/1atS68h

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s