How is statistics important in economics and economic planning?

Dear Student,
Statistics is the most important tool in economic planning as for planning for the future we need current status of the economy which should of quantifiable in nature. Statistics provides the collection and the organisation of data for this. Also in order to plan we need to analyse the current status of the economy which can be done through statistical tools which really help in formulating the next economic plans. It also tells about the current economic status which provides the basis for the economic planning. Analysing the statistical data helps in deriving results of the current economic status and in interpreting the future results or outcomes. Statistical investigations are used in the formation of economic policies like price policies, income policies, etc. It is a mode of economic forecasting as it ascertains the future course of events or actions which are of economic signification like studying about the price level for the last several years we can predict the price level or trend of the future.    


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