7 Key Qualities That Define a Good Economist

7 Key Qualities That Define a Good Economist

By 2026 the employment rate of economists is projected to have risen by 6%.  This is because the complexity of the global market increasing along with financial regulations, thus the business environment will be more competitive.

This profession is critical in the corporate world. It involves the collection and analysis of data to study the production and distribution of goods and services, researching trends as well as evaluating economic issues.

With economists earning an average of $ 100,000 annually, it can be a very promising career path to follow. In this article, we will look at some of the qualities that make a good economist.

A Love for Numbers

This profession involves a lot of data analysis. Though some of the data interpreted will be graphs and charts. Everything must be backed by calculations that are based on sound mathematical principles. To succeed, one must not just be able to tackle astronomical calculations but enjoy them. A mathematical foundation is essential in economics. This is why most people take preparatory classes in mathematics before studying economics.  

Ability to Grasp Complex Systems

To make businesses more productive at lower costs, economists must gather, study, and interpret data from multiple fields. For them to draw any useful information from that data, they must be able to make connections from unrelated data.

To become successful at interpreting these complex systems takes a lot of time. Therefore, patience is also a necessary quality in this field. In addition, keeping up with trends and developments in the industry, lots of reading is important. There are many magazines and websites specifically for economists, where they can learn more about securities, opportunities, and data that will help them make better decisions.

Knowledge of Other Social Sciences

Economics is one of the branches of social science. Along with a firm grasp of mathematics, an economist must also be well versed in some other social sciences. These include subjects like history, psychology, and sociology.

History is crucial as one must be able to understand how things have been and how they have influenced the present to accurately predict what’s to come. Sociology and psychology involve understanding the collective and individual behaviors of people. To economists, they are essential in understanding trends and responding to the market.

Previously, it was a bonus for economists to be knowledgeable in other branches of social science. However, these days it has become a necessity in this field.

An Economist Should Be a Free-Thinker

In the field of economics, one must learn and draw insight consistently from other people’s works, both past and present. This will give you a better perspective of the field as a whole. However, to succeed, you must not only use other people’s theories and principles but also be able to develop your own.

To do this, you must develop the skill of free-thought. You should learn to question everything and develop your own research that leads you to new paths. By thinking for yourself, you will be able to find limitations in other theories and improve them as well as blaze a trail for others. This ability is what sets apart the great economists from the good ones.

Communication Skills

The primary function of economists is to analyze data and complex systems in order to make observations that are otherwise invisible. Much of these observations are not easy to understand for the regular people. Even for those in the corporate world as well.

Therefore, for economists to truly be able to deliver on their functions, they must be able to translate the complex data into simple concepts that others can understand. This means that great communication skills, both oral and written, are essential in economics.

In addition, you must also be a good and commanding speaker. Even if you develop a revolutionary theory in economics, it will be of no use if you cannot articulate it.

Ability to Handle Pressure

The complexity of the data economists should analyze, as well as the numerous calculations needed to be done to back up assertions, can be very cumbersome. On top of that, the need to develop actionable data within a given timeline can be very stressful. You must be able to hold your nerve under such circumstances for you to deliver.

Also, the field of economics, as with other social sciences, does not generally deal with challenges with definitive answers. It requires you to plow through data looking for a pattern that may or may not be there to develop a solution that does not exist.  Such connections may be difficult or near impossible to make for people who easily succumb to pressure.

The challenge does not end after identifying a possible solution but after convincing the key decision-makers. This is extremely difficult as most of the time you will have to pitch something that’s out of the norm based on connections they may not be able to see. These are also highly intelligent people that are equally opinionated. In order to convince them, you must be able to withstand the pressure of their questioning and, at times, skepticism.

Open-Minded

Economics is a field that is in constant evolution. As much as one has to be an independent thinker, it is equally important to be open-minded to succeed. It is important to develop your own perspective, but it should not the only view you tolerate. Network and interact with fellow economists. Get to hear their take on matters even if you do not agree with them.

Such discussions may not necessarily change your opinion, but they may be very beneficial.  Their logic may be flawed, but there may be bits that will actually help you to build on your ideas. Also, there may be a chance your theories are wrong. This way, you will learn and make adjustments before it is too late.

Why Economists Should Be Self-Driven

As an economist, you will be required to make sense of data that may not be directly related to each other. This may sometimes force you to work late, and it can be very boring as it is monotonous. Without any clear way of determining progress, it is important that you are able to push yourself to complete tasks without supervision.

To ensure that your drive does not wane with time, find ways to motivate yourself as you work on projects.