Tech News
LAST UPDATE: June 27, 2025
ECB economists improve GDP forecasting with ChatGPT
The ECB published a study demonstrating that using ChatGPT to analyze qualitative commentary from PMI releases—focusing on narrative, tone, and anecdotes—significantly enhances real-time GDP nowcasts. Even just two pages of text were enough to outperform traditional forecasting methods (reuters.com).
Insight
This marks a significant innovation in central banking analytics. By integrating AI-driven sentiment analysis into economic models, the ECB can achieve more responsive, accurate GDP forecasts. It signals a broader shift toward leveraging machine learning and natural language processing in macroeconomic policy-making—a trend likely to reshape future central bank toolkits.
