Economic Forecasting

Economic Forecasting

Karen Fernandez-Valentine

November 24, 2014

Ashok Padhi

Economic Forecasting

Introduction

An important aspect of our financial world is Economic Forecasting because it assist us in understanding how things can be in the future based on current and historical data. In the world today, there are many databases available to us for finding information on historical economic data and to forecast the economic data for the future. Many of the topics we covered this week are helpful in attempting to get a better understanding of the data and can also assist with improving the economic future of our government as well as companies in our country. Our reflection will assist us in understanding and finding the resources that are available on economic data to improve the economy.

Historical Economic Data Resources

Economic forecasting is a vital tool to our economy, as this process enables businesses and governments to make important decisions. The process assists in attempting to predict future conditions of our economy. We use Macroeconomics to predict where our economy will be as a whole, these predictions are completed on a yearly bases. The national income plays a large part in our current state of the economy. Depending on the decline or growth within the Gross Domestic Product (GDP) will determine the government's plans for long term or short-term policy goals. The Bureau of Economic Analysis (BEA) gives performance statistics regarding the United States Economy. The Bureau of Economic Analysis (BEA) uses statistical insight to governments, businesses and the public. The statistical information Bureau of Economic Analysis (BEA) gathers is used to track economic performance between nations. The Bureau of Economic Analysis (BEA) uses several reports to assist the nation in forecasting, including the National Income and Products Accounts (NIPA), Gross Domestic Product (GDP) and Economic growth to name a few. National Income and Products Accounts (NIPA) is the most useful source of data for general economic activity in the United States.

For quantitative forecasting factors, Bureau of Economic Analysis (BEA) would have the following forecasting factors. These factors would be government spending, net exports, and investments from different points in time. The factors mentioned are stored in the Bureau of Economic Analysis's (BEA) records that are open to the public to view.

The information contained in the Bureau of labor Statistics (BLS) is valuable to be able to forecast economic trends on the United States because of all of the information it contains on the various historical