Dubai: Revision of economic data right from China to the United States, the world’s biggest economy, has been a cause of concern for the financial community. They said the revision has been triggering volatility in markets.
“We are continually seeing lots and lots of revision to economic data. There are more than normal revisions to data, and the revisions are larger than we saw in the past, so that’s increasing uncertainty about economic performance and policy,” Paul Donovan, Managing Director, Global Economics at UBS Investment Bank told Gulf News.
“The other issue is that the policy of economic analysis has deteriorated in recent years, and there’s a lot of superficial sound bytes that come in, and that is also undermining the interpretation of financial market data,” said Donovan.
Due to the confusion about the economic outlook about these broad trends, financial markets have been witnessing a lot of volatility because there would continue to be confusion about the economic outlook. The financial markets are likely to remain relatively volatile over the course of 2016, he added.
