PRESS CONFERENCES AND ECONOMIC PROJECTIONS
The economic projection for a company, region, or country is a report always expected by the investors, the press conferences in which the data is released has a great impact in the stock and securities market. The released information is used to plan strategies and create investment plan in the region or company. The economic indicators are compared with the industry estimation. If the projection is better, more money will be invested and the economic will growth, on the other hand, if the economic projection is worse than expected the assets’ prices decrease, and the economic will slow down.
What Are Economic Projections?
Economic projections are the forecast of the economic results for a country or a company When the economic projections are about a country; It reports the expected GDP, Unemployment rate, exchange rate, interest rate, economic growth and the government spends and revenue for the fiscal year. The data release is critical to evaluate how safe and secure will be any investment in the nation or in its bonds and securities. Additionally, it shows the possibility for the country to pay to its current or future creditors.
Companies’ Economic Projections
Hundreds of shareholders own several companies. Those companies are leaded and administrated by executive board and each quarter, semester, or year, the executive board inform the general public and its shareholder about the company economic performance. The press conference discloses investment plans, the new production lines, and the estimated new orders, as well as the net company income, per share dividend and the expected growth for the next period. The press conference is used to disclose the general company performance and the expected revenue. It gives a clear balance of the company assets and financial situation making easier for the investors to decide if they want to buy or sell their shares or company participation.
Press Conference for Economic Projections importance
- Disclose the economic situation of a country or company.
- Shows the current balance and financial health of the country or company
- Allows grading or rating the company or country financial risk as a borrower
- Estimate the revenue for the period
- It is mandatory to disclose the financial information to be in the stock market
- Planning marketing strategies to increase sales or production
- Accounting to the stakeholders for the company performance.
The Economic Projections Dilemma
The economic projection or forecast is a controversial point of discussion among financial experts and economists. Those who disapprove it said that any attempt to predict the future is no science based and it is closer to fortuneteller than to economic or financial science. The opponents consider impossible to anticipate the social, industrial, and political actions, which could affect the economic performance. On the contrary, those who support the economic projections said, that using the adequate indicators and statistical techniques, Not only it can anticipate the market and economic performance of any country or company, but also it can estimate the possible impact of any major social or political changes based on the recorded data from it.