What is “Nowcast” and why is it important?
“Nowcast” is the prediction the very near past and future. Compared with developed economies, some important indicators for the Turkish economy (i.e., GDP and the unemployment rate) are released with a very long delay.
GDP is released nearly with a 5-6 month delay and the unemployment rate is released with a 3-4 months delay from the beginning of the reference period. Therefore, it is important for policy makers and market participants to infer the current state of the economy by analyzing data released in a more timely manner than GDP or other similar indicators released with a long delay, at a higher frequency. Utilizing “Nowcasting” methods by economic actors in Turkey more widespread will help them to make more effective decisions.