BBVA Research and Google Partner to Improve Economic Activity Forecasts
BBVA Research and Google have partnered on a project to improve economic activity forecasts for specific productive sectors. This initiative combines BBVA Research’s forecast models and Google’s search engine data, and has proven to reduce forecast errors by 25%. The first pilot test focused on measuring current and future demand in the tourism industry.
This partnership will allow BBVA Research and Google to offer information on forecasts applied to different sectors of production. The results obtained are included in the new BBVA-Google indicators. These indicators will be published monthly, but will be provided first to customers of the bank and internet group.
These forecasts will allow industry companies to have industry forecasts for the previous month (backcast), the present month (nowcast) and the next month (forecast), providing them with valuable data for making strategic decisions.
BBVA and Google will assess the results of the pilot programmes before deciding to which strategic sectors and countries they can extend the new project, as the initial agreement was aimed at providing the broadest coverage possible.