GDP Gap Calculator: Output Gap, Recessionary vs Inflationary

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Choose the scale for your GDP values. Results are always shown in the same unit.
The real GDP output the economy actually produced in the period you are analyzing.
T
The level of output the economy can sustain at full employment, using all resources at normal intensity.
T
Output GapLarge Recessionary Gap
-5.14%

Percentage deviation of actual from potential GDP

Absolute Gap-1.16T
Gap TypeRecessionary Gap
Capacity Utilization0.9%
-5.14% %
Large Recession<-5%Recessionary-5%--0.1%Full Employment-0.1%-0.1%Inflationary0.1%-5%Overheating5%+

There is a recessionary gap of 5.14% (1.16 T).

  • The economy is producing 5.14% below its potential, leaving 1.16 T of output unrealized.
  • A negative output gap is typically accompanied by above-average unemployment, idle factory capacity, and downward pressure on prices.
  • Capacity utilization sits at 94.9%, meaning roughly 5.1% of productive capacity is unused.
  • A gap of this magnitude historically warrants significant policy intervention to close.

Next stepExpansionary fiscal policy (government spending or tax cuts) and/or expansionary monetary policy (lower interest rates) are the standard responses to close a recessionary gap.

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