Economist Intelligence Unit

Economist Intelligence Unit
Name	Economist Intelligence Unit
Type	Private company
Industry	Research and analysis
Founded	1946
Headquarters	London, United Kingdom
Area served	Global
Parent	The Economist Group

Contents

Economist Intelligence Unit

The Economist Intelligence Unit provides forecasting and advisory services to firms, institutions, and governments worldwide. Founded in 1946, it builds on links to The Economist and serves clients across sectors in cities such as London, New York City, Singapore, and Hong Kong. Its reports are cited by entities including World Bank, International Monetary Fund, United Nations, European Commission, and multinational corporations like Microsoft, HSBC, and Goldman Sachs.

History

The organization originated shortly after World War II when analysts affiliated with The Economist sought to create systematic country risk assessments for postwar reconstruction and trade with nations such as Germany, France, Japan, and Italy. Throughout the Cold War period it produced briefing material used by diplomats posted to capitals like Moscow, Beijing, Warsaw, and Washington, D.C.. In the 1980s and 1990s the unit expanded services to emerging markets including Brazil, India, South Africa, and Russia and developed products employed by investors responding to events such as the Asian Financial Crisis and the Russian financial crisis. The 21st century saw growth into sectoral forecasting covering technology hubs like Silicon Valley and Shenzhen and partnerships with institutions such as OECD and World Economic Forum. Ownership remained tied to The Economist Group, itself associated with families and investors including the Cadbury family and firms like Exor (company).

The firm offers country risk reports, sector studies, industry forecasts, macroeconomic models, and bespoke consulting for clients ranging from sovereign wealth funds such as Norwegian Sovereign Wealth Fund to corporations including Procter & Gamble, Toyota, and Apple Inc.. Standard products include the Country Risk Service, the Global Forecasting Service, and indices such as the Democracy Index, the Political Risk Index, and the Business Environment Ranking, used alongside indices like Transparency International rankings and World Bank Ease of Doing Business Index by users in policy units of bodies like European Central Bank and Bank of England. It publishes topical briefings on crises such as the Global Financial Crisis of 2007–2008, the COVID-19 pandemic, and geopolitical shocks like the Annexation of Crimea by the Russian Federation and the Iraq War. Corporate clients commission scenario planning, due diligence, and merger-and-acquisition support comparable to services from firms like McKinsey & Company, Boston Consulting Group, and KPMG.

Analytical methods combine quantitative econometric modelling, qualitative expert judgment, and scenario analysis drawing on time series data from providers such as International Monetary Fund, World Bank, United Nations Conference on Trade and Development, Organisation for Economic Co-operation and Development, and national statistical offices including ONS (United Kingdom), Bureau of Economic Analysis, and Statistics Bureau (Japan). The unit triangulates proprietary surveys, field reporting from bureaus in cities like Cairo and Buenos Aires, datasets from commercial vendors like Refinitiv and Bloomberg L.P., and archival material from institutions such as British Library and Library of Congress. Methodological transparency is informed by standards used by academic centres including London School of Economics, Harvard Kennedy School, and Stanford University research groups, and it cross-references legal frameworks such as agreements brokered at the World Trade Organization and regulatory decisions from agencies like the U.S. Securities and Exchange Commission.

The company is a private subsidiary of The Economist Group, headquartered in London with regional offices in New York City, Singapore, Hong Kong, Buenos Aires, Johannesburg, and Dubai. Leadership typically comprises a chief economist, editorial directors, and regional heads drawn from institutions such as Goldman Sachs, IMF, European Bank for Reconstruction and Development, UNDP, and academia including professors from Oxford University and Cambridge University. Governance involves boards and shareholders including legacy families like the Rothermere family and corporate stakeholders such as Daily Mail and General Trust investors previously associated with The Economist Group transactions. The organizational model resembles that of other intelligence and advisory firms such as Control Risks and Eurasia Group, with research teams organized by region and sector and client-facing units offering subscription and project-based engagements.

Critiques have focused on perceived conflicts of interest when commercial relationships intersect with editorial proximity to The Economist, prompting comparisons with controversies around media-affiliated consultancies linked to outlets like The Washington Post and The New York Times. Academic reviewers at institutions such as Columbia University and University of Chicago have interrogated assumptions in scoring methodologies used for indices, echoing debates that affected indices from Moody's Investors Service and Standard & Poor's. Errors in forecasting during events like the Global Financial Crisis of 2007–2008 and the Brexit referendum attracted scrutiny from financial commentators at outlets including Financial Times and Bloomberg News. Transparency advocates referencing Transparency International have questioned the opacity of some bespoke advisory engagements, and litigations in commercial disputes have involved law firms such as Allen & Overy and Linklaters.

Reports and indices are widely cited by international organizations including United Nations, International Monetary Fund, World Bank Group, and policy bodies like European Commission and African Union. Think tanks such as Chatham House, Brookings Institution, Council on Foreign Relations, and Carnegie Endowment for International Peace use its analysis in briefings. Media outlets including BBC, The New York Times, Financial Times, Wall Street Journal, and Reuters regularly reference its forecasts. Academic researchers from Harvard University, Princeton University, Yale University, and Massachusetts Institute of Technology cite its datasets in studies on international development, political risk, and market integration. Corporate strategists at firms like Amazon (company), Samsung Electronics, and BP incorporate its scenario work into investment planning, while central banks such as Bank of England, Federal Reserve System, and European Central Bank monitor its macroeconomic projections.