FORECASTING ECONOMIC GROWTH FOR ESTONIA:
APPLICATION OF COMMON FACTOR METHODOLOGIES

Christian Henning Schulz

I present new leading indicators for economic growth in Estonia.
They were derived using common factor methodologies, i. e. extracting common trends from small-scale and large-scale data sets. Analysis of growth cycles is provided as well as a forecast evaluation and comparison with more naive forecasting techniques, both in-sample and pseudo-out-of-sample.