Why is economic analysis important?

Hence, economic analysis is an important part of fundamental analysis. Economic Analysis is a study of the following factors. 1. Gross Domestic Product (GDP): GDP is the total value of goods and services produced in an economy. In a growing economy, GDP is high and companies post higher profits.

What is economic analysis?

Economic Analysis is a study of the following factors. 1. Gross Domestic Product (GDP): GDP is the total value of goods and services produced in an economy. In a growing economy, GDP is high and companies post higher profits. Whereas during recessions, profits fall leading to unemployment, lower spending etc.

What is fundamental analysis?

In simple words, fundamental analysis can be categorised as the detailed study of the basic factors like economy, industry and the like that affects the performance of an organisation. The main task in fundamental analysis is to explore and interpret the financial statements of the organisations. 1