Home – Home – Jornals – Region: Economics and Sociology 2020 number 2

Recent research gives preference to GDP as the most important economic indicator. Meanwhile, according to the Russian school of economic thought, the primary goal of production growth is final consumption by households. Indeed, comprehensive and proven-effective forecasting tools designed over time to predict the prospects for growth and location of production have designated it as the main criterion (objective function). We refer to the absolute level of household final consumption and the dynamics of its change as the key indicator of national economic efficiency. This development goal should not lose its social focus regardless of management arrangements chosen and business patterns employed, albeit related to them. The existing forecasting tools reflect the actual procedure for obtaining a tangible commodity bundle of input-output composition, services included. During financial computations, a summarizing factor often presented in the mass media, GDP, is predominant among the resultants. In terms of content, this indicator is gross and intermediate to the main one (household final consumption), so it differs from the latter in values and emerging dynamics. This circumstance requires greater emphasis on the final consumption indicator and its relation to the production indicators of aggregate economic forecasts. It is to be accounted for when estimating priorities in long-term industrial and regional calculations, as well as drafting both generalfit-for-purpose and managerial solutions that affect the local business climate for various participants, which is achievable with modern interregional economic forecasting tools.