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Economy

Japan closes output gap, but prices fail to budge

Supply drops below stagnant demand as weak pay growth dampens consumption

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Despite Japan's acute labor shortage, construction companies and others are finding ways to adapt without raising wages.   © Reuters

TOKYO -- Japanese demand has surpassed the nation's output capacity in two straight quarters for the first time in three years, yet the economy still lacks a spark as stubbornly low wages block the government's long-awaited virtuous cycle.

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