What do the projections cover?
Projections of domestic demand components and output (GDP) are made in “real” terms, i.e. adjusted for inflation. Labour market prospects are summarised by the unemployment rate and inflation is measured in particular by the “GDP deflator”, the broadest measure of domestically generated inflation, and by the consumer price index (often referred to as “headline inflation”). As already mentioned, particular attention is given in the projection exercise to ensuring the consistency of international trade volume and price projections, trade representing a principal channel through which developments in one country affect other economies. The current account balance measures a country’s external trade and payments position. It includes trade in goods and services as well as the balance on foreign investment income and official transfers. These projections are only the “tip of the iceberg”. A vast number of other important variables are projected as well, including among other things, governm
