Author(s): Bayu Supardi
Econometrics plays a vital role in understanding and predicting economic trends by leveraging statistical and mathematical models. This article explores the significance of econometrics in forecasting, focusing on its ability to analyze complex economic systems and improve decision-making. Despite its transformative potential, econometrics faces challenges such as data quality issues, model limitations, and the need for interdisciplinary approaches. The article also highlights innovations in econometric techniques, including machine learning integration and big data applications, which are reshaping the field. By addressing these challenges, econometrics can become an even more powerful tool for policymakers, businesses, and researchers.