APAC Daily Chart Book

January 8, 2025

Japan

The BoJ’s estimate of the output gap was -0.5% in Q3, remarkably similar to the Cabinet Office estimate of -0.4% for the same quarter. The Cabinet Office has projected a positive output gap of +0.4% for the fiscal year starting in April 2025, marking the first positive annual output gap in seven years if realised. It is notable, however, that the recent run-up in inflation was largely disconnected from domestic demand pressures, instead reflecting imported inflation due to a weaker yen.

Australia