Norges Bank

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 below shows estimated output gap in per cent from the last Monetary Policy Report.


Source: Norges Bank

Monetary Policy Report with charts in PowerPoint
(Save the PowerPoint file, open it in PowerPoint, and then double-click on individual charts in order to gain access to the underlying data)