The importance of long-run growth analysis

Forecasts are usually made to help and guide decision making. Good forecasts are preconditions for good, informed decisions. These decisions may vary from a _nancial market bet on interest rate changes to the policy decision on how to structure a country's pension system. Ideally, decision-makers should be as well prepared as possible for the future, which would allow them to act appropriately. To detect challenges and opportunities in a timely manner decision-makers require a good forecasting framework. Given the role governments, companies and individuals play, knowledge about the drivers and linkages that determine the future will allow these players to actually shape the future themselves.