Economic analysis is through economic theory and basic data, using a variety of indicators and models, to a certain period of economic dynamics and the effect of measurement. And economic analysis can be divided into macro analysis and micro analysis according to the scope of analysis objects
Specifically, economic analysis is able to convert the financial reports and data displayed in financial information provided by research objects. Economic analysis is an activity in which financial information and data contained in the transaction events of the research objects are converted into economic information. These economic information can reflect the difference of things, explain the change of things. Therefore, according to the changes in economic information, it is possible to distinguish the differences in the allocation of enterprise or market resources and the changes in transactions.
Economic analysis provides people or enterprises with relevant needs with economic information useful for decision-making, and sets up a series of analysis procedures to actively participate in the formulation of business management policies, so as to improve the business efficiency of enterprises.