Finance

GDP Gap (Output Gap) Calculator

Measure the difference between actual GDP and the economy's potential output.

Actual GDP ($B)

Potential GDP ($B)

Formula:
GDP Gap = Actual GDP − Potential GDP
Gap % = (Actual − Potential) / Potential × 100
Negative = Recessionary Gap; Positive = Inflationary Gap

What the GDP Gap Tells Us

A negative gap (recessionary) means the economy is underperforming — unemployment is likely above natural rate. A positive gap (inflationary) means the economy is overheating — inflation pressures build.