Forecasting

Non-communicable diseases (NCDs) are the leading causes of mortality in Serbia, with cardiovascular diseases (CVDs) accounting for a substantial share of premature mortality. In alignment with Sustainable Development Goal (SDG) Target 3.4, which aims to reduce premature mortality from NCD by one-third by 2030 relative to 2015, this study forecasts changes in CVD mortality counts at the municipal level in Serbia. Time-series data for the period 2005–2022 were analyzed within a spatio-temporal forecasting framework implemented in the Space Time Pattern Mining toolbox in ArcGIS Pro (Version 3.1). Three established forecasting models (Curve Fit Forecast, Exponential Smoothing, and Forest-based) were applied, and the most accurate model for each municipality was selected using location-specific municipality-level validation. The results reveal pronounced spatial variation: approximately half of the municipalities (51.2%) are forecasted to experience a decline in CVD mortality counts by 2030, while others are expected to show increases or no statistically significant change. Forecasted differences range from a 15.1% decrease to a 13.9% increase across municipalities, indicating heterogeneous spatial trajectories and suggesting that achieving SDG Target 3.4 may remain challenging without targeted interventions across municipalities where mortality reductions are not forecasted. Although the study does not introduce new forecasting methods, it provides a novel spatially disaggregated application of multi-model forecasting to support municipality-level monitoring of SDG 3.4. The results underscore the need for geographically differentiated public health policies and demonstrate the value of spatial forecasting approaches for supporting equitable and targeted health planning. Full article

Medium-term 5G/NB-IoT planning is made difficult by simultaneous uncertainty in device adoption and per-device traffic behavior because deterministic point forecasts do not quantify overload risk or support reliability-based capacity decisions. A diffusion-to-dimensioning workflow is proposed in which S-curve adoption modeling, bounded usage priors, scenario stress testing, and Monte Carlo uncertainty propagation are combined to generate predictive demand distributions, exceedance curves, and quantile-based capacity rules. The framework is applied to a Great Britain case study for 2025–2029 using smart meter deployment data and an M2M-based proxy for asset-tracking adoption. Analysis shows that planning-year upper-tail outcomes are driven primarily by asset-tracking usage uncertainty rather than by proxy scale alone. A ±30% perturbation of the AT adoption anchor changes $Q_{0.95}$ by approximately ±29.8%, whereas stressed AT usage increases $Q_{0.95}$ by 74.4%. Plausible positive dependence among key AT operational inputs further raises $Q_{0.95}$ by 18.3–22.5%. Limited hold-out evaluation provides strong out-of-sample support for the smart meter adoption stage and plausibility-only support for the shorter AT proxy. The framework is intended for medium-term, data-lean planning settings and is designed to support transparent risk-based capacity decisions rather than deterministic point sizing. Full article

Timely labor market monitoring is essential for policy design and operational planning, yet annual reports can mask turning points and subgroup heterogeneity. This paper develops a reproducible monitoring and prediction framework using administrative statistics from the General Organization for Social Insurance (GOSI) in the Saudi Open Data Portal. We document descriptive patterns in formal participation and insurable wages, including age-group dispersion, stable correlation structure, and explicit handling of an anomalous wage release and limited missing wage entries. We then formulate from non-salary administrative descriptors. Under leakage control, Random Forest models achieve accuracy around 0.71 across releases. Most errors are concentrated between adjacent wage bands, which is consistent with threshold discretization of a continuous wage distribution. To support operational deployment, we add out-of-time validation across releases and probabilistic assessment, showing that predictive skill transfers across updates and that calibration improves the reliability of probability scores for monitoring thresholds. Overall, the results indicate that administrative releases contain persistent actionable signals for wage segmentation without salary-derived inputs, supporting forecasting-oriented surveillance and early-warning dashboards. Full article

Indoor CO₂ forecasting supports proactive ventilation control that balances air quality with energy efficiency. While Machine Learning (ML) models have shown strong performance in controlled settings such as schools, their generalization across indoor spaces with diverse occupancy dynamics remains poorly characterized. We present a systematic benchmark of 11 forecasting models spanning simple baselines, statistical methods, classical ML, deep learning, ensembles, and foundation models using 18 weeks of IoT sensor data spanning six real-world use cases: conference rooms, dining halls, hospitals, food markets, offices and student residences. Performance depends strongly on the prediction horizon and on the regularity of occupancy-driven CO₂ patterns. Simple baselines tend to perform best at short horizons (10 min ahead), while ensembles and fine-tuned foundation models provide more robust accuracy at longer horizons (4 h ahead). Remarkably, zero-shot foundation models demonstrate the ability to outperform trained classical models in data-scarce scenarios, challenging the traditional paradigm of localized training. These findings indicate that optimal forecasting strategies are context-dependent and challenge the assumption of universal model superiority. Full article

Rapid urbanization has transformed the face of Texas by converting agricultural and natural lands into expanding built-up areas. This study analyzes and simulates land-use and land-cover (LULC) changes in Kaufman County, Texas, one of the fastest-growing counties in the United States, using a hybrid Cellular Automata–Artificial Neural Network (CA–ANN) model within the Quantum Geographic Information System (QGIS) Modules for Land-Use Change Evaluation (MOLUSCE) framework. Multitemporal NLCD datasets (2001, 2011, and 2021) and six spatial drivers: Elevation, Slope, Aspect, Distance from Roads and Rivers, and Built-up Density were used in the modeling framework. Transition relationships were calibrated using the 2001–2011 LULC data, and the model was validated by simulating the 2021 LULC map from the 2011 baseline. The calibrated model was then used to simulate future LULC scenarios for 2031, 2041, and 2051. Model validation yielded an overall Kappa value of 0.84 and a correctness of 90.9%, indicating high similarity between the observed and simulated maps. The results indicate simulated urban expansion, with built-up areas increasing by nearly 30% by 2051 at the expense of cropland and open areas, with forest and water bodies slightly increasing, and wetlands remaining stagnant. The CA–ANN model effectively captured the nonlinear, spatially dependent land-transition patterns using open-source tools. These findings provided useful information for sustainable land-use planning and environmental management, with the potential to incorporate spatial modeling into regional development strategies in rapidly urbanizing areas of Texas. Full article

The symmetric Mean Absolute Percentage Error (sMAPE) is a forecast error metric that has been proposed as an alternative to the more common Mean Absolute Percentage Error (MAPE), which is undefined whenever an actual is zero; the sMAPE does not have this problem. Thus, the sMAPE at first glance appears to be more suitable for evaluating forecasts of low volume or intermittent count demand time series. However, the sMAPE suffers from a number of other shortcomings; e.g., it is 2 for a zero actual regardless of the forecast, it always rewards (elicits) integer forecasts 0, 1, 2, …, if actuals are counts, and it elicits a (typically useless) zero forecast for sufficiently intermittent actuals. This paper collects such properties and discusses their real-world implications so the forecaster can make an informed decision as to whether to use the sMAPE or an alternative. In our opinion, the sMAPE is either unnecessary or dangerous; it should not be used. Full article

This paper examines when textual information from central bank communication improves forecasts of policy rate changes. Using the minutes of the Brazilian Central Bank’s Monetary Policy Committee (Copom), we study whether textual content helps predict changes in the Selic target rate between consecutive meetings. The minutes are encoded using dense sentence-level embeddings, and low-dimensional textual factors are extracted via principal component analysis estimated exclusively on the training sample to prevent look-ahead bias. Predictive performance is assessed out of sample using an expanding-window backtesting framework and compared against standard forecasting benchmarks, including persistence and random-walk specifications, linear autoregressive models, regularized regressions, and state-space models estimated via the Kalman filter. We find that text-based predictors perform poorly when used in isolation but deliver meaningful forecast improvements when combined with short-run dynamics and regularization. These gains are economically relevant and arise primarily in episodes associated with policy rate adjustments, whereas simple persistence-based forecasts remain difficult to outperform during rate-hold periods. Overall, the results indicate that central bank communication contains forward-looking information that is valuable for forecasting policy changes, but that this information is sparse, episodic, and best extracted through disciplined regularization and dynamic modeling rather than purely cross-sectional textual signals. Full article

In the context of global warming, the prediction of extreme precipitation events faces great challenges, especially the ensemble forecast of convective-scale heavy precipitation. Taking the heavy rainstorm in Zhengzhou on 20 July 2021 as an example, this paper aims to explore the performance of the convective-scale ensemble forecasting system based on the local breeding model cultivation method (LBGM) in extreme precipitation forecasting, and reveal the key physical mechanisms affecting the quality of forecasting. The traditional scoring (TS, Bias), neighborhood FSS and Contiguous Rain Area (CRA) methods were used to systematically evaluate the precipitation forecast, and the superior and inferior forecast members were diagnosed and analyzed by combining physical quantities such as isentropy vortex, relative vorticity, and water vapor flux divergence. The results show that: (1) the LBGM-EPS system can better capture the spatial distribution and intensity of heavy precipitation, which is better than the single deterministic forecast; (2) The CRA method is better than the traditional score in describing the spatial structure and intensity of precipitation, and can effectively identify the good and bad members of the forecast. (3) The reason why the dominant forecast members perform better is that the simulation of the dynamic-thermal structure of the mesoscale convective vortex is more reasonable, especially the coupling mechanism of the downward transmission of the high-level vortex and the convergence of water vapor at the lower level is better. The preliminary application of convective-scale ensemble forecasting based on the LBGM in this study has reference value for improving the prediction ability of extreme precipitation. Full article

This paper offers a hybrid forecasting approach that merges a local-level state space Kalman filter with a Long-Short-Term Memory (LSTM) neural network to assess the downside risk of the Botswana Pula versus the US Dollar (BWP/USD). Inspired by the inability of conventional econometric models to capture complex latent structural shifts and nonlinear patterns, our architecure uses a bottom-up hierarchical methodology in which the smoothed level component of the exchange rate is isolated by the Kalman filter and subsequently fed into the LSTM architecture. Three key indicators for assessing downside risk—Maximum Drawdown (MDD), Conditional Drawdown-at-Risk (CDaR), and Downside Deviation—are used to assess model performance across various time-frames (7, 30, 90, 180, and 240 days). As confirmed by Kupiec and Christoffersen’s backtesting processes, the findings show a high degree of alignment between projected and actual values, with negligible downside deviation bias and robust calibration. Moreover, global economic and geopolitical shocks, such as the COVID-19 pandemic, the Russia–Ukraine conflict, and the 2015–2016 Shanghai Stock Exchange crash, are important factors that influence exchange rate volatility, according to explainable artificial intelligence techniques, particularly SHAP (SHapley Additive exPlanations) analysis. Downside risk is also greatly increased by regional currency links, especially the impact of the ZAR/BWP exchange rate. On the other hand, domestic temporal variables, such as week, quarter, and month, have very little impact. These results emphasise how Botswana’s currency rate is structurally vulnerable to external shocks and how crucial it is to include both global and regional considerations in risk analysis. The research concludes that the accuracy and transparency of projections for exchange rate risk significantly improve when practical filtering is combined with deep learning and explainable AI. To improve macroeconomic resilience and guide successful financial risk management plans in emerging market environments, policymakers are advised to employ AI-driven forecasting techniques, enhance regional monetary coordination, and set up real-set learning systems. Full article

The study documents the impact of the external sector on movements of the Pakistan Stock Exchange (PSX), covering conventional and Islamic indices. Selected variables include international trade, foreign investment, remittances, oil, gold, and currency markets, as well as the KSE-100 and KMI-30 indices. The sample period covers the latest 130 months, from 2015/01 to 2025/10. Results are documented through descriptive statistics, pairwise correlations, and OLS regression. Stability of coefficients during the review period is checked by calculating BTC-Var and switching Var. Outstanding momentum is evident in market indices (in the final phase), accompanied by growth in remittances, while the national currency has experienced an alarming depreciation. The combined impact of the external sector is not in the higher range for either index (adjusted R-square values are low). A group of four variables (remittances, oil, gold, and currency markets) was significant for the conventional index, while a group of three variables (oil, gold, and currency markets) was significant for the Islamic index. All significant variables contribute positively to stock index movements, except the exchange rate. BTC-Var and switching var suggest instability of relationships and regime-dependent var dynamics. The findings are beneficial for managers and investors in predicting index movements and portfolio diversification, as well as for relevant authorities in making policy decisions that promote prudent exchange-rate management and facilitate remittances. To the best of the author’s knowledge, this study is among the few that jointly examine the impact of external-sector variables on stock market movements. Full article

This study investigates regime-dependent forecasting of the Saudi stock market by combining macro-controlled dependence analysis with nonlinear predictive modeling. Using daily data from September 2010 to August 2025, we analyze the interaction between the Tadawul All Share Index (TASI) returns and crude oil returns while controlling for inflation and interest-rate dynamics. A four-variable VAR with macro controls is estimated separately in pre- and post-COVID regimes to characterize directional predictability and changes in transmission lags. We then evaluate out-of-sample return forecasting performance across econometric benchmarks (ARIMA, ARIMAX, and VAR) and machine learning models (LSTM and XGBoost) under a strictly time-ordered expanding-window design with sequential train/validation/test partitioning. The results indicate that traditional linear benchmarks exhibit limited predictive ability in both regimes, with negative out-of-sample explanatory power. By contrast, XGBoost delivers the strongest overall performance, achieving positive out-of-sample R² in both regimes (0.046 in pre-COVID and 0.010 in post-COVID), together with the lowest forecast errors (RMSE = 0.0081 pre-COVID; 0.0078 post-COVID). Interpretability analysis further reveals a regime-sensitive shift in drivers: short-horizon equity lag dynamics dominate during stable periods, whereas oil-related and macro-financial variables gain importance under turbulent conditions. Economic-value evaluation supports the practical relevance of these gains, showing that XGBoost-based signals yield superior risk-adjusted trading outcomes and remain favorable under downside-risk and drawdown-based assessment. Overall, these findings highlight that forecasting in oil-linked emerging markets is inherently regime-dependent and that nonlinear ensemble learners, particularly XGBoost, provide a more robust and economically meaningful approach under structural change. Full article

Persistent fiscal stress in South African municipalities undermines service delivery, yet practical tools for early detection remain limited. This study predicts one-year-ahead municipal financial distress to support risk-based prioritisation. We develop machine learning models using a 2018/19–2022/23 municipality panel, combining 13 financial health indicators from State of Local Government (SoLG) reports with selected socio-economic variables. Penalised logistic regression is benchmarked against random forest and XGBoost under a leakage-aware, time-ordered split into training, validation, and an out-of-time test year; class imbalance is handled through class weighting. Performance is evaluated using PR-AUC, ROC-AUC, calibration, and a capacity-constrained Top-30 rule. All models outperform a naïve last-year baseline on the out-of-time test (PR-AUC 0.934–0.954; ROC-AUC 0.886–0.923), with bootstrap intervals supporting robustness. Random forest performs best overall, while penalised logistic regression remains competitive. Under the Top-30 rule (12.3% workload), precision is high (precision@30 0.967–1.000) while recall is modest (recall@30 0.186–0.192). SHAP values and logistic odds ratios identify liquidity, solvency, cash coverage, and employment deprivation as key drivers. The Top-30 rule corresponds to an annual intensive monitoring portfolio that is reasonable under constrained staffing and budget capacity in national and provincial oversight units, while probability thresholds are reported as conventional benchmarks rather than as policy triggers. Full article

The SAIFIN project (Satellite data and Artificial Intelligence for FINtech) develops a novel algorithmic trading system that integrates satellite imagery, financial data, and advanced artificial intelligence to enhance decision-making, particularly in commodity and agricultural markets. This paper presents the motivation, design, implementation, and validation of the SAIFIN framework. Leveraging alternative data and modular multi-agent architectures, SAIFIN aims to deliver robust, context-aware trading signals in diverse market conditions. Full article

New Zealand, located along the boundary between the Pacific and Australian plates, is among the most seismically active regions in the world. In such an area, reliable short-term forecasting of strong aftershocks is essential for seismic risk mitigation. In this study, we apply NESTORE (NExt STrOng Related Earthquake), a machine learning probabilistic forecasting algorithm, to the New Zealand earthquake catalogue to evaluate the probability that a mainshock of magnitude M_m will be followed by an event of magnitude ≥ M_m − 1 within a defined space–time window. NESTORE uses nine features describing early post-mainshock seismicity and outputs the probability that a cluster is Type A (i.e., containing a strong aftershock) or not (Type B). We assess performance using two testing strategies: chronological training–testing splits and k-fold cross-validation and refine the training set using the REPENESE outlier-detection procedure. The k-fold approach proves more robust than the chronological one, despite changes in catalogue characteristics over time. Eighteen hours after the mainshock, NESTORE correctly classified 88% of clusters (75% for Type A and 92% for Type B; Precision = 0.75). Notably, the highly destructive 2010–2011 Canterbury–Christchurch sequence was correctly identified as Type A. These findings support the applicability of NESTORE for short-term aftershock forecasting in New Zealand. Full article

Accurate wind power forecasting is critical for enhancing the operational efficiency and stability of electrical power grids. Conventional single-variable signal decomposition forecasting methods ignore the coupling relationship between wind power and multiple meteorological data, thus limiting prediction accuracy. This study proposes an accurate and fast short-term wind power prediction approach based on series-core fusion technology considering multiple meteorological data. In the data preprocessing stage, the multivariate variational mode decomposition (MVMD) algorithm decomposes wind power and meteorological variables into the same predefined number of frequency-aligned intrinsic mode functions (IMFs), thereby enhancing feature representation and improving forecasting accuracy via a more comprehensive and detailed dataset representation. During the training stage, the series-core fused time series (SOFTS) model establishes the connection among wind power channel and other meteorological variable channels for each IMF, achieving fast convergence through its streamlined and parallel structure. In the forecasting stage, the final wind power prediction is generated by the reconstruction of all IMFs. Furthermore, we conducted a comprehensive performance evaluation by comparing the proposed MVMD-SOFTS model with eight alternative models, including the CNN model, the TCN model, the LSTM model, the GRU model, the Transformer model, the SOFTS model, the CEEMDAN-SOFTS model, and the VMD-SOFTS model. The results indicate that MVMD-SOFTS outperformed all other models, demonstrating its effectiveness in capturing the multifaceted relationships in wind power forecasting. Full article

Sustainable corporate governance plays an essential role in promoting responsible economic growth and enhancing social and environmental well-being in emerging economies. In this context, Environmental, Social, and Governance (ESG) performance has become an important indicator of a firm’s commitment to sustainable development and its alignment with the United Nations Sustainable Development Goals, particularly SDG 8 and SDG 12. This study investigates the impact of Environmental, Social, and Governance (ESG) performance on the financial sustainability of publicly listed companies in Thailand, a rapidly developing Southeast Asian economy where empirical evidence remains limited. Using an unbalanced panel dataset of 965 firm-year observations across multiple industries, multiple regression models were employed to assess the influence of ESG performance on two financial indicators: return on capital employed and return on assets. Granger causality tests were also conducted to explore directional relationships between sustainability performance and financial outcomes. The empirical results reveal a significant negative short-term association between ESG performance and return on assets (ROA), whereas the relationship with return on capital employed (ROCE) is statistically insignificant. The causality analysis indicates that ESG performance Granger-causes ROA, implying that sustainability-driven strategic decisions may precede and influence financial outcomes over time. Additionally, leverage emerges as a key constraint to financial sustainability, negatively affecting both ROCE and ROA. These findings underscore the challenge of striking a balance between sustainability investments and immediate profitability in emerging markets. Policymakers and business leaders are encouraged to promote supportive governance frameworks, reduce financial barriers, and foster ESG-driven practices that contribute to long-term sustainable competitiveness and inclusive development. Full article

The main objective of this work is to characterize Sudden Stratospheric Warming (SSW) conditions and their impact on local weather forecasting and climate change, using SSW definition criteria. The SSWs strongly affect Arctic vortex structure and midlatitude weather conditions. This work evaluates the frequency, amplitude, and dynamical–thermal characteristics of SSWs under historical and Representative Concentration Pathway (RCP) 4.5 scenarios, focusing on stratospheric air temperature (T_s) and zonal wind speed (U_h) at the 10° N and 60° N latitudes. The fifth-generation ECMWF atmospheric reanalysis (ERA5) is employed as the reference dataset. Simulations of five Coupled Model Intercomparison Project Phase 5 (CMIP5) models, represented by M1 to M5, are analyzed. The primary group of models included 1) the Australian Community Climate and Earth-System Simulator, version 1.3 (ACCESS1-3, M1), 2) the Hadley Center Global Environmental Model, version 2—Carbon Cycle (HadGEM2-CC, M2), and 3) the Max Planck Institute Earth System Model—Medium Resolution (MPI-ESM-MR, M3). The analysis period covers SSW events related to the Quasi-Biennial Oscillation (QBO) in the Northern Hemisphere (NH) from 1980 to 2100. The key findings indicate that while M1, M2, and M3 simulate SSW occurrence correctly for the 21st century, they exhibit significant systematic deficiencies in capturing the structural dynamics of SSW events. Specifically, the M1, M2, and M3 models underestimate the polar stratospheric temperature amplitude (T_amp) by approximately 75–80% and zonal wind amplitude (U_amp) by more than 60% compared to the ERA5 analysis. Furthermore, ERA5 exhibits a strong negative correlation (R ≈ −0.8) between U_h and T_s that is not estimated accurately using the present models. The importance of the horizontal resolution of the models and wave–mean flow interactions in determining SSW intensity and occurrence is also found to be a critical metric. Results suggest that SSW definition criteria affect Arctic and midlatitude weather system prediction at a rate of 61–82%. It is concluded that the primary configurations of CMIP5 models for accurately capturing the dynamical structure and evolution of QBO–SSW interactions are needed, and that they affect future projections of SSW events. Full article

Temperature is a fundamental property of water that determines its quality and the course of both biotic and physical processes. Therefore, the distribution and future changes in thermal conditions are crucial for the functioning of the hydrosphere. In this study, a hybrid air2water model was used to determine the course of the sea surface temperature, which allows for its prediction using a minimal set of input data based on the air temperature. The widespread availability of air temperature measurements worldwide offers broad potential for the model’s application, which is especially important in coastal zones—the most dynamic and diverse areas of marine ecosystems, and simultaneously the most exposed to anthropogenic pressure. The study analyzes four hydrological stations in the southern part of the Baltic Sea, where the results confirm the high predictive capabilities of the air2water model for sea surface temperature. Depending on the adopted climate change scenarios, the average rate of sea surface temperature increase by the end of the 21st century is projected to be 0.15 °C per decade (SSP2-4.5) and 0.33 °C per decade (in the case of the SSP5-8.5 scenario). If these projections come true, they should be considered unfavorable, and such a situation will require taking into account changes in the thermal regime in the functioning of the Baltic Sea. More broadly, this simple yet effective method for predicting thermal conditions may be applied in interdisciplinary research as well as in the management of coastal marine zones. Full article

The Baltic Dry Index (BDI) measures the cost of transporting dry bulk commodities such as coal, iron ore, and grain. As a key indicator of global trade, supply chain dynamics, and overall economic activity, accurate short-term forecasting of the BDI is crucial. This paper compares six univariate methods to obtain a more precise short-term BDI prediction model, providing valuable insights for decision-makers. The six forecasting techniques include Grey Forecast, ARIMA, Support Vector Regression, LSTM, GRU and EMD-SVR-GWO. Model performance is evaluated using three common metrics: Mean Absolute Error (MAE), Root Mean Squared Error (RMSE), and Mean Absolute Percentage Error (MAPE). Our findings reveal that the novel EMD-SVR-GWO model outperforms the other univariate methods, demonstrating superior accuracy in forecasting monthly BDI trends. This study contributes to improved BDI prediction, aiding managers in strategic planning and decision-making. Full article