New model accurately predicts Finnish economy's growth, aiding policymakers.
The article discusses a method called nowcasting, which predicts the current state of the Finnish economy before official data is released. The researchers used a large Bayesian vector autoregressive model to make these predictions. They found that this model performed well in forecasting the quarterly GDP growth rate of Finland. The study compared this model to other forecasting methods and found it to be effective in providing timely and accurate economic assessments.