Economic Forecasting Model for Western Australia
State Final Demand (SFD) is often used as a proxy to Gross State Product (GSP) for purpose of measuring economic health of a state. An accurate prediction of SFD will therefore provide important information to policy makers for budgetary and spending decisions as well as designing appropriate policies to ensure the health of the state economy.
This project develops and implements a model to forecast State Final Demand for all states within Australia by investigating the spillover effects between states as well as spillover effects between consumptions and investments within states. By disaggregating SFD into its components, the proposed model reveals additional insight for improving SFD forecasts for Western Australia. The model is being implemented with a web-interface which allows user to generate multi-period forecasts of SFD for WA as well as some of the individual components of SFD, such as Household Consumption and Government Expenditure.