Economic forecasting is heavily used in financial markets, by governments and companies. Forecasting involves the use of statistical models to predict future economic growth and other macroeconomic outcomes, using a range of inputs, including past performance data and a wide range of leading and lagging indicators. Forecasting is used in the financial markets to create scenario planning around asset allocation and investment positioning and, in the corporate world, for exercises such as budgetary planning and capex. Governments use forecasts, among other things, for budgetary purposes and policy planning.

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