Forecasting Macro-Economic Variables: An Empirical Study

Forecasting of variables or the scientific prediction of future values of socio-economic variables has become a necessity for the Government, Industry, planners and financial performers for policy making. Its importance to planning and decision making has become apparent and it covers varied domain of Economics, Psychology, Sociology, Politics, Business, Meteorology, Management Science and other emerging areas. Forecasting normally involves time series data which often exhibits differential trends providing a platform for examining it as a function of time or as a function of a pool of determinants. Many statistical techniques are available ate present for forecasting.