Day: November 9, 2025

An economic forecast provides insight into the economy’s future, so businesses can make informed decisions. A business might use a forecast to decide whether to hire extra workers or buy new equipment. Government officials also rely on economic forecasts when crafting and implementing fiscal and monetary policies.

Creating an economic forecast involves two key components: data and a model. Data includes information about a number of variables that are likely to impact the economy, including GDP growth, inflation and unemployment rates. Then, a model is used to calculate the expected outcome of each variable in a specified time frame. Common models include econometric models and computational general equilibrium models.

The models that are used in economic forecasts can be complex, and many economists are trained in the application of statistics and econometric techniques. However, the complexity of these models does not necessarily guarantee that forecasts will be accurate. In fact, research has shown that even expert forecasters are subject to a range of biases and limitations.

For example, financial series like stock market prices can be difficult to forecast over short horizons because they are volatile. In contrast, interest rates are more predictable over short horizons because they tend to be fairly “sticky.” Thus, an expert can predict the direction of interest rates with a higher degree of accuracy than they can the direction of stock market prices. For this reason, it is important for experts to incorporate qualitative methods into their analytical process—just as a chef uses intuition and creativity when cooking, rather than simply following recipes.

Cloud computing refers to the delivery of IT services through the internet, allowing employees to work from anywhere with an internet connection. Its scalable architecture allows organizations to add storage and compute power quickly, based on the amount of data being processed. It also provides cost-effective redundancy to protect against system failures and enable disaster recovery strategies.

For users, cloud-based IT applications look just like any other current tech they access through a web browser or mobile app. To infrastructure users, a cloud platform provider (CSP) offers a broad array of IT tools and services over the internet—including software as a service (SaaS), infrastructure as a service (IaaS), and platform as a service (PaaS).

The cloud model removes the need for big outlays in capital equipment, as well as ongoing maintenance expenses, reducing the total cost of ownership. A pay-as-you-go model, with businesses paying for only the services they use, further reduces costs.

Depending on the business’s needs, the cloud can provide flexibility and collaboration to improve employee productivity. For example, workers can access work files from anywhere on any device with an internet connection, making it easy for teams to collaborate from different locations or times zones. This also means that they can work on projects while traveling or working from home, increasing productivity and efficiency.

For larger-scale IT organizations, the cloud can be an ideal platform for developing and deploying new systems. Platform-as-a-service offerings, such as Amazon Web Services and Google Cloud, allow developers to build complex IT applications using their preferred development environments, removing the need for hardware management or deployment. It also provides a choice of “best-of-breed” technologies from multiple CSPs, which helps avoid vendor lock-in and provides room for innovation.