Definition
Economic forecasting is the process of making predictions about the economy. Forecasts can be carried out at a high level of aggregation—for example for GDP, inflation, unemployment or the fiscal deficit—or at a more disaggregated level, for specific sectors of the economy or even specific firms.
Economic Forecasting
What is ‘Economic Forecasting’
The process of attempting to predict the future condition of the economy. This involves the use of statistical models utilizing variables sometimes called indicators. Some of the most well-known economic indicators include inflation and interest rates, GDP growth/decline, retail sales and unemployment rates.
Explaining ‘Economic Forecasting’
While economic forecasting is not an exact science, it remains an important decision-making tool for businesses and governments as they formulate financial policy and strategy.
Further Reading
- The use and abuse of real-time data in economic forecasting – www.mitpressjournals.org [PDF]
- Product differentiation in the economic forecasting industry – www.sciencedirect.com [PDF]
- An overview of economic forecasting – onlinelibrary.wiley.com [PDF]
- Prediction markets for economic forecasting – www.sciencedirect.com [PDF]
