Baseline Projection  

Definition of Baseline in Economics. A baseline is a projection of how an economy will develop if existing trends are maintained. For example it provides a guide for level of growth without any policy changes.

An economist can then consider how growth rates may diverge from the baseline projections if certain policies are implemented. For example, if the government provides more education and training will that increase the growth rate above the baseline projection?


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By on November 28th, 2012