Top Economic Indicators

What to Watch & Why

The following ten indicators are in fact, quite critical in today’s times given all the imbalance occurring in the financial world. Read the papers and you would know about a lot of global events. In order to have a good recap of the events making news, they have been used as examples to support the ten indicators which you will see. The given indicators will try to cover as much as possible by including several other factors that form part of an indicator to help appreciate their interrelatedness.

I sincerely hope that reading this would enhance your knowledge and make you start looking at the financial world differently. The indicators mentioned are not in order of ranking since ‘beauty lies in the eyes of the beholder’ – beauty often lies.

So let’s begin with the real interesting stuff after the cautious and verbose introduction – the top ten indicators to watch out for and why you should watch out for them [according to me, the writer]. Two things to note before we begin – a leading indicator is one that helps determine economic changes and a lagging indicator follows economic changes.

  1. GDP and GDP Growth Rates
  2. Debt; Debt ratios and; Debt cycles
  3. Inflation and Inflation Expectations – Their friends & enemies
  4. Exchange Rate Stability
  5. Interest Rates – Policy Rates and Treasury Bond Rates
  6. Gold Prices and other metals’ prices
  7. Stock Markets and Volatility
  8. Risk Premiums
  9. Budgets; Deficits & Surpluses and; FDI Flows
  10. Crude Oil Prices