How accurate are South African macroeconomic forecasts?

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dc.contributor.author van Walbeek, Corne
dc.date.accessioned 2014-06-27T08:45:28Z
dc.date.available 2014-06-27T08:45:28Z
dc.date.issued 2013
dc.identifier.citation van Walbeek, C.P. (2013). How accurate are South African macroeconomic forecasts? Journal for Studies in Economics and Econometrics, 37(3): 1-23. en_US
dc.identifier.uri http://reference.sabinet.co.za/sa_epublication_article/bersee_v37_n3_a1
dc.identifier.uri http://hdl.handle.net/11090/750
dc.description.abstract This paper considers the ex post accuracy of two published sets of macroeconomic forecasts: the Economist Intelligence Unit's (EIU's) Country Report and the "Economist of the Year" consensus forecast, sponsored by Media 24. Root weighted mean square errors (RWMSEs) of these two competing entities' forecasts are, on average, about 60% of the RWMSEs of adaptive naïve predictions for current-year forecasts and about 75% of the RWMSEs of adaptive naïve predictions for one-year-ahead forecasts. There is no substantial difference in the forecast accuracy of the two entities, despite large differences in forecasting methodology. Forecasts are revised on a monthly basis. Monthly revisions in Media 24's consensus forecast are substantially more likely to reduce forecast errors than the EIU's monthly forecast revisions. Revisions in the next-year forecasts for GDP growth and inflation are only marginally better than random, and thus such revisions have little credibility. en_US
dc.language.iso en en_US
dc.publisher Journal for Studies in Economics and Econometrics en_US
dc.subject Macroeconomic forecasts en_US
dc.title How accurate are South African macroeconomic forecasts? en_US
dc.type Article en_US


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