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Economic Analysis

Macroeconomic Forecasting System

ClientCorporate Treasury
IndustryManufacturing
Duration5 months
Team2 engineers
₹50Cr
Hedging Savings
Annual savings from optimized hedging strategy
25%
Forecast Accuracy
Improvement over naive forecasts
12
Economic Indicators
Tracked for decision support

The Challenge

A large manufacturer needed better visibility into economic trends affecting their business—currency movements, commodity prices, and demand cycles—to optimize hedging and inventory decisions.

Our Solution

Developed an econometric forecasting system using VAR models, cointegration analysis, and leading indicator tracking. Built scenario analysis tools for stress testing financial plans.

Our Approach

1

Identified key macroeconomic variables affecting business performance

2

Built VAR models for currency and commodity price forecasting

3

Applied cointegration analysis for long-term equilibrium relationships

4

Created leading indicator dashboard tracking business cycle signals

5

Developed scenario analysis for treasury stress testing

Technology Stack

PythonStatsmodelsProphetTableauAWS

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