Economic Indicators

Economic Indicator

A statistic or data point that reflects the overall health and direction of an economy. It helps policymakers, businesses, and investors understand economic trends and make informed decisions. GDP, Unemployment, etc.

Macroeconomics

The branch of economics that focuses on the behavior and performance of an entire economy, rather than individual markets. It is the study of economies on a large scale, encompassing both national and global economies. It also examines the factors that influence economic growth, government policies, and the business cycle.

Nominal GDP

Measured using current prices, without adjusting for inflation. Reflects the market value of goods and services in today's prices

Real GDP

Measured using constant prices, adjusted for inflation. Shows the true value of goods and services produced, removing the effects of price changes over time

GDP

A leading economic indicator that measures the total dollar value of all final goods and services produced within a country’s borders in a given year

INFLATION

A sustained increase in the general price level of goods and services in an economy over time. As inflation rises, the purchasing power of money decreases, meaning consumers can buy less with the same amount of money

UNEMPLOYMENT

The unemployment rate is the percentage of people in the civilian labor force who are not working but are actively looking for jobs. This indicator helps measure the health of the labor market and is an important signal of economic performance. A high unemployment rate suggests economic challenges, while a low rate often indicates a strong economy with good job opportunities.

CPI (Consumer Price Index)

• Measures the cost of living and inflation by tracking the average price of a specified set of goods and services.

• It reflects the purchasing power of the dollar, showing how much a dollar can buy over time.

• Each month, about 400 commonly used products are sampled to calculate the CPI, helping to gauge price changes in everyday goods and services.

DEFLATION

A decrease in the general price level of goods and services in an economy over time. While it may seem beneficial for consumers, deflation can harm the economy by leading to lower wages, reduced demand, and economic stagnation