Unit labor costs have risen, and potential output growth has fallen.

Most local forecasters now put Brazil s growth rates well below potential output.

Output growth

Output growth a

This will raise actual output to the level of potential output, thereby closing the output gap.

Structural problems must be addressed, and employment growth must be generated from increased investment and output growth, taking advantage of the enormous job creating potential of small enterprises.

At 60 a barrel, expect the measured long term rate of potential world output growth to slow by roughly 0.3 per year.

At 40 a barrel, expect oil prices to slow the long run growth rate of the world's potential output by 0.1 per year.

Africa s Inclusive Growth Potential

Population growth continues to outpace rise in output.

Table 2. Developing Africa growth output, by subregion

Those who predict generally low interest rates over the next generation point to rapid growth of productivity and potential output in the world economy.

Potential output has also been called the natural gross domestic product.

Rapid output growth without equally rapid capital stock or employment growth must have reflected rapid productivity growth.

Monetarists insist that economies experience inflation when money supply growth persistently exceeds output growth.

This new round of central bank activism reflects persistent concerns about economic growth. Despite a once unthinkable amount of monetary stimulus, global output remains well below potential, with the potential itself at risk of being suppressed.

If actual output is below potential output, this means that total spending is insufficient to buy what the economy can produce.

So the growth potential is correspondingly larger.

Moreover, output growth in the United States was not economically sustainable.

Table 1 Growth of world output, 2000 2006 (Annual percentage change)

The growth of world output in 1994 would be lower than the average growth rate in the 1980s.

Since Abenomics was launched, the deflation gap (the difference between actual and potential output) has dropped from roughly three percentage points to below 1.5. This implies that, while the first two arrows are helping to improve Japan s actual growth path, the third arrow has yet to do much for potential growth.

That encouraged investment spending, which in turn drove productivity gains and output growth.

That growth model has now almost exhausted its potential.

However, vegetable oils have the largest potential for growth.

The theory behind the massive economic stimulus efforts that many governments have undertaken rests on the notion of the output gap. This is the difference between an economy s actual output and its potential output.

Thus, Latvia today enjoys a sustainable fiscal position, with output close to its potential and growing.

The dominant mode of thought within the Federal Reserve with which I agree appears to be that the information technology revolution is continuing, that the pace of growth of potential output in the US remains very fast, and that the output gap is thus relatively wide.

Table 2 Frequency of high and low growth of per capita output, 2002 2004

The world s emerging market economies are in better shape but, while their underlying trend growth in potential output is much higher than that of the advanced economies, there is no cyclical de coupling.

Russia s economy is now hostage to potential global growth.

Generally, tourism offers considerable potential for sustained growth in SIDS.

Only 11 of its China beating nominal GDP growth between 2003 and 2011 was due to growth in real (inflation adjusted) output.

With a large output gap and low inflationary pressure, expansionary policies show great potential for reviving economic activity.

After that, however, the Soviet growth rate and share of global output began a long decline.

The resulting rise in output per worker, together with slow wage growth, reduced unit labor costs.

The slow growth in regional output has been caused largely by the worsening recession in Brazil.

11. The growth in total output was a fairly general phenomenon, although there were wide divergences.

Monetarists insist that economies experience inflation when money supply growth persistently exceeds output growth. That has not happened yet, so inflation has been postponed.

Growth in real output has averaged around 5 percent in the past seven years, but rapid population growth has offset much of this increase.

Average output growth in the industrialized countries in 1992, still a low 1.5 per cent, improved over the 0.7 per cent growth in 1991.

For the period 1990 1993 the growth of output averaged about 3 per cent, and a similar rate of growth is expected for 1994.

Consider basic foodstuffs. Rising food prices plague most of Asia, while Russia s potential for expanding grain output is enormous.

First, prolonged unemployment destroys not just current but also potential output by eroding the human capital of the unemployed.

In economics, potential output (also referred to as natural gross domestic product ) refers to the highest level of real Gross Domestic Product output that can be sustained over the long term.