How is economic growth correlated to index growth?
DOI:
https://doi.org/10.47611/jsrhs.v10i3.1775Keywords:
Economic growth, index growth, Pearson product-moment correlation coefficient, theoretical world versus real-world situation, consumer sentiments, consumer confidenceAbstract
This study will mainly focus on the relation between GDP growth and stock market index growth through various methods like the Pearson product-moment coefficient correlation, comparing the theoretical world to the real-world situation, and finally by looking at consumer sentiments and confidence. This could help various analysts, economists, and even the general public. Through the course of our study, we find out various trends in this study, at some point, the results were contradicting themselves but then our last test made it all clear, which proves that there is no correlation between GDP growth and stock market index growth, but then both of them drives from consumer confidence and consumers future actions.
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