A Neural Model Forecasts Macroeconomic Indicators

A neuro-computational AI model, implementing insights into human and animal reactions in response to abrupt changes, is employed to forecast macroeconomic indicators. In turbulent years of pandemic and war, the model achieves good accuracy on GDP, Imports, and Exports. Using only a few previous data points, it outperforms the benchmark linear-fit models. It seems that knowledge of the neural mechanism, warning an organism about an imminent danger, can help to understand the economic effects of large shocks.