Abstract:
This paper introduces the monthly State Bank of Pakistan’s EasyData, for conducting empirical macroeconomic analysis and forecasting for Pakistan's economy. For this purpose. We perform a forecasting exercise using the conventional econometric models and the most recent machine-learning algorithms. We find that the machinelearning models outperform the benchmark and regression models based on observed factors. Furthermore, the dataset has a higher ability to predict the external variables, a possible outcome of Pakistan's economy and its persistent balance of payment problem. The focus of policy has been to address this issue.
