In the fast-paced world of economic policy and financial markets, waiting for official GDP statistics can feel like an eternity. With quarterly GDP data often released weeks after the quarter ends, economists and policymakers need better tools to understand economic conditions in real-time. Enter GDP nowcasting – a technique that uses machine learning to predict current-quarter GDP growth using timely economic indicators. What is GDP Nowcasting? GDP nowcasting bridges the gap between economic theory and practical decision-making by providing near real-time estimates of economic growth. Unlike traditional forecasting that predicts future values, nowcasting focuses on estimating the current state of the economy using available high-frequency data. The approach leverages the fact that while GDP data comes with a lag, many related economic indicators are available much sooner – employment figures, industrial production, retail sales, and consumer sentiment surveys are all published...
Economics, Data Science, Consulting