A Factor Model Approach to Nowcasting Danish GDP

Economic Memo - March 2021 - No. 3

Authors Schmith, Adrian Michael Bay; Grenestam, Erik
Subject Other economic analyses; Models; Statistical method
Type Economic Memo
Year 2021
Published 23 March 2021
Abstract icon This memo documents a nowcasting model for Danish GDP used during the economic crisis related to the outbreak of COVID-19. During this crisis, the model provided timely and more accurate nowcasts than a simple model. To improve the timeliness of nowcasts we make use of new high-frequency indicators.