Output gap
Norges Bank operates a flexible inflation targeting regime, so that weight is given to both variability in inflation and variability in output and employment.
The output gap reflects our assessment of overall capacity utilisation in the economy in relation to a normal level. A positive output gap is normally referred to as a boom, while a negative output gap indicates that there is scarce capacity in the economy. Norges Banks projections for the output gap is discussed further in the Monetary Policy Report.
The chart belove shows the output gap over the past two years in per cent and the projection for the period ahead from the last Monetary Policy Report.
Chart in PowerPoint (17 kB)
(Save the file, open it in PowerPoint, and then double-click on individual charts in order to gain access to the underlying data)
Data for the output gap and projections can also wnloaded from charts in PowerPoint published in connection with the Monetary Policy Report.
Source: Norges Bank
Chart updated: 31 October 2007