• Media type: E-Book; Report
  • Title: A latent weekly GDP indicator for Germany
  • Contributor: Eraslan, Sercan [Author]; Reif, Magnus [Author]
  • Published: Frankfurt a. M.: Deutsche Bundesbank, 2023
  • Language: English
  • Keywords: E32 ; economic indicator ; Business cycle ; C43 ; C38 ; dynamic factor model
  • Origination:
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  • Description: This paper introduces a weekly GDP indicator to track real economic activity in Germany in real-time. We use a mixed-frequency dynamic factor model with quarterly, monthly, and weekly indicators and obtain the weekly GDP indicator as the weighted common component of the mixed-frequency dataset. Our indicator is able to approximate latent week-on-week growth of German GDP. In addition, it enables computing a weekly GDP series in levels, which is also of great interest for central bankers, policy makers, and practitioners interested in analysing the current state of the economy in a timely manner. Finally, we demonstrate the benefits of our indicator for high-frequency tracking of the German economy using a recursive nowcasting exercise.
  • Access State: Open Access