These “residual” factors include, for example, technological improvements and the impact of education and training.ix Another way that the Bank manages the uncertainty around potential output growth is by conducting an in-depth review of our projections on an annual basis. First, economic data are regularly revised, so for that reason alone an annual review makes sense.
Also, our empirical techniques are “living” in a sense—we are continually improving them as we learn from experience and ongoing research.x Plus, in the annual reassessment, we further account for uncertainty by publishing ranges around our estimates and projections that expand with time.