One of the most important domestic economic indicators for each country is the capacity utilization. It is calculated based on the analysis of the potential usage of the state’s economic resources.
Ideally, this indicator has to be tending to 100%. It will show that a country has a perfect order with the economy and the market’s opportunities are used. It was practically noted that the normal capacity utilization rate amounts not less than 85%. Even these figures give evidence of the high balance between the state’s opportunities and the practical actions. In the conditions of a contemporary market, indicator’s approaching of 100% will indicate the forthcoming inflation growth.
The capacity utilisation rate indicates possible long-term trends in the market. For this reason, these data are almost never taken into consideration on a short-term horizon.