Economic Forecasting


DEFINITION of '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.

BREAKING DOWN '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.

  1. Macroeconomic Factor

    A factor that is pertinent to a broad economy at the regional ...
  2. Coincident Indicator

    A metric which shows the current state of economic activity within ...
  3. Lagging Indicator

    1. A measurable economic factor that changes after the economy ...
  4. Economics

    A social science that studies how individuals, governments, firms ...
  5. Leading Indicator

    A measurable economic factor that changes before the economy ...
  6. Economy

    The large set of inter-related economic production and consumption ...
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