Macroeconomic Variable

Macroeconomic variable forecasting aims to predict key economic indicators like GDP and exchange rates, improving policymaking and investment decisions. Current research heavily utilizes machine learning techniques, including both traditional models and newer approaches like large language models and natural language processing, to analyze diverse data sources such as economic statistics, news articles, and social media sentiment. These advancements offer improved forecasting accuracy compared to traditional methods, particularly in stable economic periods, although incorporating expert knowledge remains crucial during periods of significant change. The resulting insights enhance understanding of complex economic relationships and inform more effective strategies.