What is economic forecasting?

Economic forecasting is the process of predicting future economic conditions based on the analysis of historical data, economic indicators, and statistical models. It helps governments, businesses, and investors make informed decisions by estimating trends such as GDP growth, unemployment rates, inflation, and market demand. Forecasts can range from short-term projections to long-term outlooks and are subject to uncertainty due to changing global and local factors. Accurate forecasting is crucial for planning, budgeting, and policy-making.