Keywords: Gross Domestic Product (GDP), GDP growth, machine learning algorithms,
random forest regression, linear regression, autoregressive integrated moving average (ARIMA),
forecasting, economic analysis, decision-making.
Gross Domestic Product is the total monetary value of the all the finished goods and services
produced within a country in a specific time period. [Dwarakanath G V, (2022)]
. Calculating real
GDP involves comparing the most recent year’s real GDP with the previous year’s real GDP and then
dividing the difference by the prior year’s real GDP. Alternatively, real GDP can be derived by
considering the nominal GDP and the prevailing inflation rate. Understanding GDP and its growth
is essential for evaluating the strength and trajectory of an economy.
Today, nations around the world are actively striving to increase their GDP and GDP per
capita, which is the ratio of total GDP to the population. This metric offers insights into the living
standards of a country’s citizens. Consequently, GDP becomes a vital yardstick for policymakers,
economists, and researchers when analyzing and predicting future economic levels. Researchers
employ various methods, models, and tools to forecast GDP accurately. While traditional methods
and models have been widely used, they often fall short of providing satisfactory results. As a result,
more sophisticated and precise approaches have emerged. Among these is the utilization of
machine learning algorithms (ML), a branch of artificial intelligence (AI) and data science (DS).
Machine learning algorithms offer a promising avenue for GDP prediction due to their ability
to analyze vast amounts of data, identify patterns, and make accurate forecasts. By leveraging ML
techniques, economists and researchers can incorporate a wide range of economic, financial, and
social indicators into their models, enhancing the accuracy of GDP predictions. In this article, we