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.

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RELATED FAQS
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    Learn why the unemployment rate and Consumer Confidence Index are two of the best economic indicators when investing in the ... Read Answer >>
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    An indicator is anything that can be used to predict future financial or economic trends. For example, the social and economic ... Read Answer >>
  3. What is the difference between market indicators and economic indicators?

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  4. What is the difference between financial forecasting and financial modelling?

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