Business, Legal & Accounting Glossary
For traders involved with the foreign exchange and stock market, forecasters of currency exchanges, and even economic policymakers around the globe, something they work with daily is economic statistics. To most people, these numbers and facts mean little but to professionals such as this, economic statistics are a vital part of doing their job. In summary, these statistics is a branch of applied facts that focus on a collection, processing, compilation, and dissemination of statistics pertaining to any region, country, or countries’ economy.
The truth is that gathering and analyzing data for economic statistics is not for everyone but for people who enjoy and have a talent for working with numbers and in-depth information, as well as having the ability to conduct research and organize findings this type of work would be very gratifying. Keep in mind that when discussing “economic statistics”, this is also known as a subtopic associated with official statistics. The reason is that most economic statistics are developed by official organizations such as the United Nations, central banks, the European Union, ministries, and so on, as well as statistical institutions.
The primary purpose of economic statistics is to prepare and provide data required by people who conduct economic research or econometrics. Then, as mentioned at the beginning of this article, several professionals depend on economic statistics to do their job to include global economic policymakers. Although people around the world have depended on economic statistics, even in crude form since the creation of currency, today the demand for accurate and detailed information is incredibly high.
If you look at the demand for economic statistics from a practical sense, you would see they are based on interpretative and theoretical models for reference. If these models were to change, the result of what the statistics would dictate would be a different economic condition or system. For this reason, economic statistics of today represent supply and demand, which is constantly playing catch up with each other. This is critical since both supply and demand are influenced by societal and political changes.
Since the conclusion of WWII to today, economic statistics have evolved dramatically. Additionally, new challenges associated with an increase in the services sector and the development of globalization. Remember, many different things play an important role in the way economic statistics function to include developing concepts, classifications, definitions, methods, and so on used to describe the movement of currencies from around the world.
Therefore, people who use economic statistics need the data so they can analyze the behaviour of economic operators, develop informed business and economic policies, compare pros and cons of various investments, and look at worldwide economic movement. Although some debate exists regarding the way in which economic systems work, we know that for most of the economic statistics used in today’s world are based on definitions and concepts on an international level. The bottom line is that without accurate economic statistics as the framework, it would be impossible for world policymakers, traders, and forecasters to be successful in what they do.
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This glossary post was last updated: 28th March, 2020 | 5 Views.