If this is the case, it means that the favorable data so far have exaggerated actual economic performance and the forthcoming data will be disappointing – showing a weaker picture than actual conditions. Attention should be paid to the risk that such distorted data could weaken expectations for recovery held by firms, households, and markets.
As a longer-run risk for many economies, prolonged stagnant economic performance coupled with the aging of a population could reduce the flexibility of the economy such as in terms of the mobility of people across sectors and regions, thereby making it more difficult for the supply side to respond smoothly to changes in the demand structure. As a result, growth potential could decrease.