Question

What are economic indicators?

Answer 1

An economic indicator shows the measurement to determine and analyze the economic progress and performance of a country.  Examples of this are consumer price index, inflation, industrial production, bankruptcies, gross domestic product, retail sales, stock market prices, money supply changes and unemployment rate.  How these indicators perform depends on the effectiveness of the policies and programs being implemented by the government’s economic institutions.  If these policies help in the improvement of the country’s economic development then it will be reflected in these indicators.  Same can be said if it is not effective.