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Sentiment and Uncertainty Indices from economic news in Colombia

Authors: Rocío Clara A. Mora-Quiñones; Antonio José Orozco-Gallo; Dora Alicia Mora-Pérez;

Sentiment and Uncertainty Indices from economic news in Colombia

Abstract

This study introduces an approach for measuring sentiment and uncertainty indices in Colombia through text mining. Economic news from digital media, spanning March 2020 to September 2024, is analyzed using dictionary-based methods and predefined word lists. The constructed indices reflect major macroeconomic events, such as the phased reopening during the pandemic, the national strike in May 2021, and the decline in demand associated with elevated inflation. These indices function as leading indicators and exhibit statistically significant associations with high-frequency economic data. Incorporating news-based sentiment and uncertainty indices improves the precision of nowcasting Colombia’s economic activity using a dynamic factor model. The results indicate that incorporating qualitative, forward-looking news with traditional data enhances the monitoring of short-term economic fluctuations and the identification of turning points.

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Powered by OpenAIRE graph
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average
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