Before proceeding to determine the meaning of the term at hand, it is essential that we discover its etymological origin. Thus, we could point out the following characteristics:
• Indicator is a word that emanates from Latin, specifically from the verb “indicare”. It is the result of the sum of three Latin components: the prefix "in-", which means "inward"; the verb "dicare", which can be translated as "pointing the finger", and the suffix "-dor", which is synonymous with "agent".
• Economic, meanwhile, is a word that belongs to Greek. Specifically, we can say that it is made up of the following Greek elements: "oikos", which is equivalent to "house"; "Nomos", which means "rule", and the suffix "-ikos", which can be translated as "relative to".
A indicator is that which indicates or serves to indicate . It can be a physical instrument that indicates something or a symbolic representation that shows signs or signals.
Economic is it pertaining or relative to the economy . This term (economy), meanwhile, refers to social science dedicated to study of the processes of production, exchange and consumption of goods and services .
A economic indicator therefore it is a index which enables represent an economic reality quantitatively and directly . It is usually a statistics which implies a measurement of a variable during a certain period. The interpretation of the indicator allows to know the situation of the economy and make projections.
It is important to know that professionals in the business world are essential to know how to interpret and analyze the data of the different economic indicators. And this way they can anticipate the movements and circumstances that will occur in the market.
He Consumer Price Index (CPI) It is one of the most used indicators. It allows you to compare the prices of a group of products that are purchased by consumers on a regular basis and discover the variations of each one.
Other very frequent indicators are the Gross Domestic Product (GDP) or Gross Domestic Product (GDP) , which reflects the production of goods and services end of a country in a temporary period.
In addition to these indicators, these others of great importance can also be noted:
• Inflation. This is a term used to determine the rise in a country experienced in the prices of goods as well as the different services.
• Interest rates, which come to be the price that money has. They are especially important when applying for a loan or financing any type of property.
• Devaluation. This economic indicator shows the loss of value that the currency of one country experiences with respect to those of others.
The rent per capita , on the other hand, is the result of the division between the GDP and the number of inhabitants of a country. This indicator, of course, ignores income inequalities: in a hypothetical country with two inhabitants, if one wins 10,000 pesos per month and the other only 2.000 , the per capita income will be 6,000 pesos monthly , far superior to what the poorest earns.