Evaluating Economic Policies: Anticipating GDP Trends and Government Spending

Economic policies have an impact on wealth distribution, investment, employment, and the structure for allocating resources. They moderate economic inequality and direct the course of a country's growth. This research paper aims to forecast GDP and government expenditures based on a number of variables, including import, export, unemployment rate, and government spending. We employed advanced algorithms to accomplish this. For which we utilized a variety of machine learning models, including ridge regression, lasso regression, and linear regression, to get the best accuracy possible. The best models for predicting GDP and government spending were the random forest and gradient boosting regressor, with R-square values of 0.999 and 0.919, respectively. We also conducted a preliminary analysis of various economies, highlighting their distinctions, to complement our research aimed at predicting government expenditure and GDP.