Japan's GDP gap widens to 2.2% in April-June period

Japan's gross domestic product gap in the April to June period of this year widened to 2.2 percent, according to government data released Friday, indicating the economy is struggling with its exit from deflation.

The latest data show that if the pace of demand shortfall remains unchanged in the coming year, the GDP gap, annualized in value, is expected to stand at about 10 trillion yen, the Cabinet Office said.

The January to March quarter supply-demand gap narrowed to 0.3 percent due to last-minute demand before the April 1 consumption tax hike in Japan.