Economic forecasting is a highly uncertain activity that aims to identify the future direction of key variables in the economic and financial system to help make decisions on policy setting, investments and business planning. Good economic forecasting becomes particularly necessary when there is an economic shock and a degree of uncertainty such as we have seen — and are seeing — in the current scenario. Where we move closer to the target, we see that the different forecasts tend to converge progressively towards the final value. These forecasts can come from financial institutions, policy institutions, academic forecasters or government and semi-government agencies. It also may overlook the changing context in which economic and financial decisions are being made if the economic structure has changed.

Source: The Edge Markets July 28, 2022 03:33 UTC