Reserve Bank of India begins using Google Trends for economic nowcasting
What happened
The Reserve Bank of India is utilizing Google Trends and other research to conduct economic nowcasting. This approach is being explored for state-level economic activity research in India. This methodology is being considered because traditional methods, such as collecting Index of Industrial Production data, can suffer from significant time lags and gaps in a large, informal economy.
From moneycontrol.com
Why it matters
The adoption of search trend and satellite-based indicators, such as Night Time Light, represents a shift toward using alternative proxies to measure economic activity in India. This is relevant because traditional data collection methods face challenges in covering the country's vast and heterogeneous informal sector.
From moneycontrol.com
Who's involved
- Reserve Bank of IndiaCentral bank of India conducting economic nowcasting research
- Google TrendsPublic search product utilized by the Reserve Bank of India
- GoogleAmerican multinational technology company whose product is used
Possible ripples
Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.- New data methods may improve finance ministry's economic planningThe finance ministry may benefit from more timely economic data from RBIPossible
- RBI's new data methods may guide joint market reforms with SEBIRBI's new economic data could inform joint market reforms with SEBIPossible
- Better economic data may help stabilize the Indian RupeeImproved economic data could help stabilize the Indian Rupee's valuePossible
Keep exploring
The entities involved
-
Reserve Bank of India
central bank of India
-
Google Trends
public outlet of Google that shows how often a particular search-term is entered relative to the total search-volume