Taking these factors into account, it is fair to judge the output gap as currently being more or less balanced. B. Interpretation of output gap estimates  There is a high degree of uncertainty with respect to estimates of the output gap.
The recession caused a deep reduction in both central and local government tax receipts and increased the level of government debt. In addition to the cost of servicing the debt, the general government balance will also be compromised in the future by increasing age-related expenditure. Conclusion Recent months have seen signs of a renewed pick-up in world growth.