Governments and businesses use economic forecasts to help them determine their strategy, multi-year plans, and budgets for the upcoming year. Forecasts are used for a variety of purposes. In preparing economic forecasts a variety of information has been used in an attempt to increase the accuracy.Įverything from macroeconomic, microeconomic, market data from the future, machine-learning (artificial neural networks), and human behavioral studies have all been used to achieve better forecasts. Economists typically use commentary along with data visualization tools such as tables and charts to communicate their forecast.

These risks help illustrate the reasoning process used in arriving at the final forecast numbers. The economist typically considers risks (i.e., events or conditions that can cause the result to vary from their initial estimates). Some forecasts are produced annually, but many are updated more frequently. A broad range of forecasts are collected and compiled by 'Consensus Economics'. Many institutions engage in economic forecasting: national governments, banks and central banks, consultants and private sector entities such as think-tanks, companies and international organizations such as the International Monetary Fund, World Bank and the OECD. Economic forecasting is a measure to find out the future prosperity of a pattern of investment and is the key activity in economic analysis. 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. ( Learn how and when to remove this template message)Įconomic forecasting is the process of making predictions about the economy. JSTOR ( December 2009) ( Learn how and when to remove this template message).Unsourced material may be challenged and removed.įind sources: 'Economic forecasting' – news Please help improve this article by adding citations to reliable sources. This article needs additional citations for verification.

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