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Economic Forecasting: What it actually means?
Economic forecasting projects key macro variables — growth, inflation, interest rates, exchange rates, employment, trade — over a defined horizon and translates them into business planning assumptions. Consultants combine quantitative models with judgement on policy, commodity and geopolitical developments to produce scenarios. Organisations then use these to set sales targets, price, hedge, plan capacity and talk to investors. Because macro conditions change, good forecasts are transparent about assumptions and provide ranges, not single numbers. That way, management can update plans quickly.
