The Congressional Budget Office prepares economic forecasts that are used in its federal budget projections and cost estimates for legislative proposals. On a regular basis, the agency assesses the precision of its forecasts by comparing them against actual economic performance, as well as other forecasts. Yesterday, CBO released an update on its recent forecasting record. The report explains how the agency measures the quality of its forecasts and the limitations of its forecast evaluations. It also explores some of the major sources of forecasting error and assesses the quality of CBO’s two-year and five-year forecasts.

Link: CBO Report