Slack in demand erodes potential output: Potential-output losses and the 2015 demand shortfall across countries
| Country | Potential-output loss | Output gap in 2015 |
|---|---|---|
| Ireland | 4.82% | 4.45% |
| Greece | 4.11% | 7.59% |
| Hungary | 3.44% | 0.69% |
| Czech Republic | 2.70% | 3.52% |
| Spain | 2.64% | 3.52% |
| Finland | 2.05% | 3.08% |
| Portugal | 1.34% | 4.98% |
| Italy | 1.23% | 3.74% |
| Poland | 1.20% | 0.16% |
| Netherlands | 0.94% | 4.09% |
| Denmark | 0.90% | 1.63% |
| Canada | 0.82% | -0.16% |
| United Kingdom | 0.81% | 0.32% |
| Belgium | 0.71% | 1.19% |
| Sweden | 0.61% | 0.76% |
| Japan | 0.61% | -0.89% |
| Austria | 0.61% | 2.64% |
| France | 0.60% | 3.08% |
| New Zealand | 0.54% | -1.22% |
| United States | 0.34% | 1.87% |
| Germany | 0.27% | -0.87% |
| Australia | 0.22% | 2.27% |
| Switzerland | -0.23% | 0.39% |
Note: Potential-output loss is defined as projected potential output growth in 2009 versus projected potential output growth in 2015. Output gap is defined as the difference between actual and potential output.
Source: Data provided in Ball (2015)