Japan's economy sees output exceed capacity the most in 9 years

Tokyo

JAPAN'S economy saw output exceed full capacity by the most in nine years in the April-June quarter, a Bank of Japan estimate showed, a positive sign for the central bank as it seeks to accelerate inflation to its elusive 2 per cent target.

The output gap, which measures the difference between an economy's actual and potential output, stood at plus 1.22 per cent in April-June, staying in positive territory for the third straight quarter, the BOJ estimate showed on Wednesday.