Nowcasting and monitoring SDG 8

Abstract

We propose a nowcasting approach for indicators assigned to the Sustainable Development Goal (SDG) 8, calling for decent work and economic growth. The nowcasts of SDG indicators are based on dynamic factor models. In this mixed frequency framework, we exploit information from a comprehensive set of quarterly data to nowcast annually observed SDG indicators. For the model selection and specification search we evaluate the nowcast properties of the models based on a pseudo real-time data set. More recent information on SDGs can disclose a possible deviation from the desired path at an early stage. As an example, we present nowcasts for SDG objectives in Austria for the year 2020. The design of our assessment follows the method and quantitative rules suggested by Eurostat. SDG 8 indicators are highly related to the underlying economic situation and the effects of the COVID-19 pandemic are clearly visible in the results for 2020.