TOKYO: Japan's government said on Thursday (Dec 26) it predicts economic output will recover to full capacity in the next fiscal year for the first time in seven years on an annual basis due to a tight labour market. Japan's output gap, which measures the difference between an economy's actual and potential output, is likely to stand at +0.4 per cent in the fiscal year starting in April, according to an estimate released by the Cabinet Office. A positive output gap occurs when actual output