Opening the Black Box: Nowcasting Singapore's GDP Growth and its Explainability
打开黑箱:新加坡 GDP 增长的即时预测与可解释性
Timely assessment of current conditions is essential especially for small, open economies such as Singapore, where external shocks transmit rapidly to domestic activity. We develop a real-time nowcasting framework for quarterly GDP growth using a high-dimensional panel of approximately 70 indicators, encompassing economic and financial indicators over 1990Q1-2023Q2. The analysis covers penalized regressions, dimensionality-reduction methods, ensemble learning algorithms, and…