Analyzing economic trends involves forecasting the condition and direction of the national and local economy.Although it is critical to remember that any kind of forecasting is not an exact science and that no one can accurately predict the future. Organization need to plan for what may happen in the economy that can have a significant impact on operations. Interest rates, levels of inflation and unemployment , international exchange rates, fiscal and monetary policy, and levels of GNP and economic growth will clearly impact what an organization will be able to accomplish ; these need to be factored in to any assessment of the future direction of the firm