An economic indicator shows the measurement to determine and
analyze the economic progress and performance of a country. Examples of this are consumer price index,
inflation, industrial production, bankruptcies, gross domestic product, retail
sales, stock market prices, money supply changes and unemployment rate. How these indicators perform depends on the
effectiveness of the policies and programs being implemented by the government’s
economic institutions. If these policies
help in the improvement of the country’s economic development then it will be
reflected in these indicators. Same can
be said if it is not effective.
