Financial Management in the Public Sector-Bloomberg Market Concepts-Economic Indicators.pdf

Financial Management in the Public Sector-Bloomberg Market Concepts-Economic Indicators. Financial Management in the Public Sector-Bloomberg Market Concepts-Economic Indicators Financial Management in the Public Sector-Bloomberg Market Concepts-Economic Indicators. The Primacy of GDP ● Main measure of economic activity ● World GDP: 8% compounded annual growth over 50 years ● How accurately do GDP statistics portray the economy? ○ Inaccurately because the scope of GDP measurements can change ● Economic growth is cyclical, with series of booms and busts● Investors interpret economy through economic indicators ● Leading indicators attract the most investor interest Economic statistics Essential Economic Indicators ● Economic growth ○ Gross domestic product ○ Market value of all final goods and services in a country