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Forecast Horizon 1 Definition The future period of time for which a demand forecast is generated, typically as long as the longest single-item cumulative lead time (on a monthly planning basis) or for 2-5 year periods for strategic planning.
For related topics, see Forecasting. Economic forecasting is the process of making predictions about the economy. Forecasts can be carried out at a high level of aggregationâfor example for GDP, inflation, unemployment or the fiscal deficitâor at a more disaggregated level, for specific sectors of the economy or even specific firms. 1 Overview.