About World Economics
World Economics is dedicated to reducing the risks involved in Business, Financial and Government decisions that use what is arguably the most important information in the world - economic data.
Data on GDP, Prices, Debt, Employment and many other economic variables are used daily to make crucial life changing decisions on government policy, and investment of all kinds, but are often of extremely poor quality.
In the worlds of science and engineering the quality of measuring instruments are usually taken for granted, and continuous efforts made to improve them. In the world of economics, efforts are made to improve ways of measuring output, prices, productivity and other variables, but massive variations exist in the quality of available data.
Standard sounding measures like GDP differ wildly in the reality of what is measured across countries, rendering attempts at comparison near impossible. And even within developed countries, data are used daily that are lacking in accuracy and unsuited to the purposes for which they are intended.
Our products draw attention to the dangers of decision making using poor data, provide a platform for discussion of ways of improving economic data, and provide data in key areas where none or only highly imperfect data exists. Our work is used by investors, traders, economists, corporations, Governments and academics.
World Economics is part of Information Sciences, a company with a 35 year history of success in the development of key business information used by major corporations, financial institutions and Governments worldwide.
Many successful knowledge products have been originated and developed by the company. They include the ubiquitous Purchasing Managers’ Indexes, a globally accepted part of the DNA of the financial world, (now owned by IHS Markit); and WARC, a global marketing effectiveness and insight database, used in over 100 countries (now owned by Ascential).
Our current product portfolio includes the Data Quality Index; the Sales Managers’ Indexes; the World Price Index; the China Report; the India Report, the American Report and the World Economics Journal.
The Data Quality Ratings
Most GDP data are badly flawed to an extent very few people realise (as are population , employment, price and most other key data). Most countries fail to achieve the standards which data of this crucial importance should meet. Yet professionals in global consultancy’s, investors, expert journalists and commentators, Government ministers, economists, businesspeople and bankers use economic data to draw conclusions and make decisions as though it represents reality. The Data Quality Ratings provides analysis and Insight allowing sensible decisions to be taken in relation to more than 150 countries.
The Sales Managers Indexes
The Sales Managers’ Indexes (SMI’s ) have been produced by World Economics since 2011 . They currently cover China, the USA and India. These three countries together currently produce about two thirds of all worldwide economic growth.
Key advantages of the SMI’s:
- The SMI’s provide the first indication each month of the speed and direction of growth.
- The SMI’s are based on a key occupational group – the sales manager - uniquely able to sense changes in business activity levels before other occupations feel market changes.
- The SMI provides the most complete indication of growth, covering all private sector activity.
- The SMI is a composite index of business confidence, market growth, sales growth, prices charged and staffing levels.
The SMI’s are regularly reported on by Bloomberg the Wall Street Journal and others, the data is only available via subscription, pricing upon request.
The World Price Index
The World Price Index is calculated monthly from a basket of internationally comparable goods and services. It is designed to alleviate the big problems associated with analysing global economic or market data using local currency based market exchange rates.
Exchange rates vary continuously, frequently with little obvious link to economic reality, but fatally distorting the perception of value in markets and economies. It is vital when analysing international data, whether for market analysis purposes, or to allocate resources across the globe, to review data using an international yardstick of value. This can only be done using Purchasing Power Parities (PPP), which make allowance for the purchasing power of currencies within individual countries to make comparisons based on a standard currency, usually "international dollars".
There are various sources of PPP data, but most are of only academic interest as they are years out of date by the time they are published. The World Price Index is the only available price index of basic consumer goods updated monthly to provide an easy way of reviewing trends or relative values of market or economic data in realistic terms.
The World Economics Journal
The World Economics Journal, has over the past decade carried the views of many of the world’s leading economists. Its credentials are further demonstrated by the high calibre of its editorial board.
The focus of the Journal is the use, measurement, accuracy and improvement of economic data. Economic data is used for many important purposes ranging from investment appraisal through to aid disbursement. But is mostly of very poor quality, even in highly developed countries. The most basic of all economic measures, Gross Domestic Product, is hopelessly flawed. For example, in most countries GDP excludes the informal economy, sometime amounting to over half of all economic activity. The contribution to GDP of the financial services sector is all but impossible to measure, and so on. Nevertheless measures of GDP are used daily throughout the world, for countless purposes.
In less developed countries the resources available for producing economic data are almost universally inadequate. The problems of counting population size are almost insuperable in many less developed countries, but even in central London severe problems have been encountered. And in some countries corruption and political calculation overtakes the need for good data.
This is a huge subject, but one starting to be understood as crucial. Good economic data in indispensable for the proper conduct of economic policy, and for many other needs. But it is exceedingly difficult to produce good data given the resources usually available. The self-imposed task of the World Economics Journal is to help improve economic data, by all means available.
Given the intensely practical nature of the subject matter of the Journal, one of our distinguishing characteristics has been an insistence on authors writing in an easily comprehensible style, without jargon or mathematics, allowing a wide readership to benefit from the thoughts of our eminent authors.