How Clear is the Crystal Ball?: Reflections on the accuracy of growth forecasts


Prakash Loungani

Published: March 2001


Two salie nt features of growth forecasts are discussed. First, recessions generally arrive before the forecast. Slowdowns are predicted but forecasters are unable or unwilling to call recessions. Second, private sector forecasts tend to be similar to those of official agencies. Some tips for forecast users are provided.



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