Economic forecasting is a forecast or a guidance

At the beginning of a new year, governments, central banks and financial institutions annouce their economics forecasting for the coming year or quarter. Forecast is usally made based on historical data and organisations' individual expectations about their future. However, when governments and some other organisations which can have strong influence on economies, their forecasts become some form of guidance and they could be influencial towards the economies.

For example, when a government annouces its economic forecast for the coming year or quarter, the forecast result is made partially based on its planned policies for the new year or quarter. In addition, the government also possibly accounce its plans for the economy and explain the reasons for the new policies. Other parties in the economy are able to see the forecasts issued by the governments and have esimations about the government and central bank policies in the new year. They are able to adjust their operation strategies according to the possible policy changes. In addition, they are also able to predict where their governments are likely to invest more or less. This can increase the effectiveness of government investment, as companies usually see government investment can help them to lower their costs and expand their revenues and profits. Moreover, as the forecasts are issued and published by governments or other influencial or powerful institutions, they become more credible. Once the forecasts are believed by general public, they will plan their strategies and these straregies will evetually result the result of the forecasts. This could be said that the forecasts guide their activities in the economy and achieve the targets of the forecasts.

Overall, forecasts issued by governments or other authorities are more like guidance as they are making powerful influence on the economy.