Nowcast Inc., a Japanese financial research and technology startup, has developed a product that estimates economic growth in real time by using satellite images of nighttime lights.
Based on algorithms that examine changes in the intensity of illumination, as well as a range of published statistics, including those for industrial production and trade, the Tokyo-based company can accurately forecast changes in gross domestic product, Chief Executive Officer Ryota Hayashi said in an interview.
Nowcast, which already provides real-time inflation data, is aiming to start publishing forecasts for economies including Japan, the U.S., China, India and Taiwan when the product is released as soon as February, according to Hayashi. The financial-technology firm is seeking to sell the service to investors who rely on official GDP figures that are released weeks after the end of each quarter.