Economic forecasts in South Africa

Abstract

There can be no doubt that economic forecasts have an important influence on business as well as on political decision‐makers in this country. Forecasts that turn out to be erroneous may have devastating effects, not only for a firm, but for a country as a whole. Unfortunately, there is considerable misunderstanding about the nature and usefulness of economic forecasts. In this article an attempt is made to formulate some guidelines as to what requirements should be met when economic forecasts are presented for consumption by fellow economists and especially by politicians and other non‐economists who need these forecasts as inputs in their decision – making process.¹⁾