2.1.2 Macro indicators

• What is an indicator?

  Gives a measure of how well a government is doing in achieving its macro objectives
• What is a LEAD indicator?

  Information that predicts the future state of the economy (from confidence and expectations)
• What are examples of lead indicators?

  Investment plans, new housing projects and data on commodity prices
• What are lag indicators?

  Information about past (or current) economic performance and the extant policies have been achieved
• What are examples of lag indicators?

  Level of GDP and current and recent levels of unemployment
• What are some key macro indicators?

  Growth of real GDP, real GDP per capita, annual rate of CPI, unemployment rate and labour productivity