3  Normally, an upward revision of the potential growth rate or potential GDP figures will exacerbate the output gap. However, with improvements on the supply side of the economy, the output gap may improve and upward pressure on prices may heighten if demand increases in the somewhat longer term at a pace exceeding growth in supply capacity.
I will elaborate on this point in section I.C. 4  BIS central bankers’ speeches  particularly the recent ones, it is important not to solely rely on the estimates of the potential growth rate, but to make a comprehensive assessment taking into consideration the actual situation of firms and households.