The estimated value of the output gap of the Japanese economy from October to December last year announced by the Bank of Japan on the 5th was negative, with demand falling below supply capacity for the third consecutive quarter.
Demand seems to have been sluggish due to the re-expansion of the infection.
The output gap is an index that shows the difference between the demand and potential supply capacity of the Japanese economy as a whole, and it is said that prices tend to fall when demand falls below supply capacity.
The Bank of Japan estimates the output gap every three months, and the estimated value from October to December last year announced on the 5th was minus 2.01%.
Compared to the previous period from July to September last year, it improved by more than 1 point, but it was negative for the third consecutive period.
During this period, economic activities that had been reduced due to the influence of the new corona such as the Go To campaign were gradually resumed, but in the latter half of the period, the spread of infection, which is said to be the "third wave" in Japan, began to occur, such as eating and drinking and lodging. Demand seems to have been sluggish in a wide range of fields, mainly in the face-to-face service industry.
In addition, the "potential growth rate", which indicates the potential growth rate of GDP = gross domestic product, announced by the Bank of Japan was only 0.04% from October to December last year.