Sources of economic information

The four sources the syllabus names for economic data, and how each maps to the variables covered in this chapter.

5 min read workbook 5.6chapter worth 5 marks5-question quiz below
ExamA list question: government websites, regulator websites (SEBI, RBI, Ministry of Finance), published economic research reports, and the Economic Survey. Watch for a distractor such as a company's own annual report, which chapter 4 said does not cover the economy in depth.

Four sources

Economic analysis lives on published data, and the syllabus lists four prominent sources of information on the economy.

  1. 1Government websites.
  2. 2Websites of regulators such as SEBI, the RBI and the Ministry of Finance.
  3. 3Published economic research reports.
  4. 4The Economic Survey.

Matching source to variable

The list is short, but it is worth knowing which source answers which of the questions raised earlier in this chapter.

Government websites
National income statistics, per capita income, sector contributions to GDP, fiscal deficit figures and public expenditure plans originate with the government's statistical and finance arms.
Regulators
The RBI publishes monetary policy decisions, the repo and reverse repo rates, CRR and SLR, inflation data used in policy and the balance of payments; SEBI publishes capital market and foreign portfolio flow data; the Ministry of Finance publishes fiscal numbers and the budget.
Economic research reports
Published research from institutions and firms interprets the raw statistics, estimates growth and inflation, and reads the phase of the cycle, which is where an analyst's mosaic (chapter 4) draws much of its economic layer.
Economic Survey
The annual government review of the economy's performance and outlook, released ahead of the budget, tying together growth, inflation, fiscal position, external balance and policy direction.
Exam trapThe annual report is a company source

An option may list a company's annual report among sources of economic information. Chapter 4 was explicit that industry conditions and the broader economy are not covered in depth in a company's own filings. The economic layer comes from government, regulator, research and the Economic Survey.

Worked exampleOne question, one source

An analyst wants to know whether the central bank has room to cut rates. The inflation trend comes from the indices published by the government's statistical arm and used by the RBI; the current policy stance comes from the RBI's own monetary policy statements; the fiscal room for spending comes from the budget documents and the Economic Survey. Nothing in that chain comes from a listed company's filings.

Take these into the exam
  • The syllabus names four prominent sources of information on the economy: government websites, websites of regulators such as SEBI, the RBI and the Ministry of Finance, published economic research reports, and the Economic Survey.
  • Each source feeds specific variables: national income, fiscal deficit and public spending from government sources and the Economic Survey; inflation indices, monetary policy and balance of payments from the RBI; market and flow data from SEBI; interpretation from research reports.
  • Company filings are not an economic source; chapter 4 noted that annual reports do not cover industry conditions or the economy in depth.

Check yourself

Answer without looking back. Misses go to your mistake notebook and come back in revision.

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Previous · Ch 5
Economic analysis in practice: secular, cyclical and seasonal trends
Next · Ch 6
Role of industry analysis and defining the industry
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