What are economic indicators?

Economic indicators are statistical data that provide crucial insights into the overall performance and health of an economy. These indicators can include various metrics such as Gross Domestic Product (GDP), unemployment rates, inflation rates, and consumer spending figures. By analyzing these data points, economists and policymakers can understand trends in economic activity, identify areas requiring intervention, and forecast future economic conditions.

Understanding economic performance through these indicators is essential for making informed decisions regarding fiscal and monetary policy, business strategies, and even individual financial choices. For example, a rising GDP may signal economic growth, while high unemployment rates could indicate economic distress. Thus, the primary role of economic indicators is to offer a quantitative basis for assessing economic conditions.