Economic forecasting tested during the crisis  Thomas Kida1 noted, “...the amount of knowledge we have in a certain area will not help us predict what will happen if the events are inherently unpredictable.” The recent global financial crisis and recession has proved to be a humbling experience for economists, financial market participants, policy makers, regulators and many others that derive their income from economic forecasting, understanding the world economy and that which governs it.
The crisis was not foreseen by most forecasters, although there was a minority who had been warning of a pending disaster for some time. The failure to forecast the “Great Recession” caused the Queen of England herself to ask why it had not been foreseen.