Prompting for Policy: Forecasting Macroeconomic Scenarios with Synthetic LLM Personas
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Abstract (arXiv)
We evaluate whether persona-based prompting improves Large Language Model (LLM) performance on macroeconomic forecasting tasks. Using 2,368 economics-related personas from the PersonaHub corpus, we prompt GPT-4o to replicate the ECB Survey of Professional Forecasters across 50 quarterly rounds (2013-2025). We compare the persona-prompted forecasts against the human experts panel, across four target variables (HICP, core HICP, GDP growth, unemployment) and four forecast horizons. We also compare the results against 100 baseline forecasts without persona descriptions to isolate its effect. We report two main findings. Firstly, GPT-4o and human forecasters achieve remarkably similar accuracy levels, with differences that are statistically significant yet practically modest. Our out-of-sample evaluation on 2024-2025 data demonstrates that GPT-4o can maintain competitive forecasting performance on unseen events, though with notable differences compared to the in-sample period. Secondly, our ablation experiment reveals no measurable forecasting advantage from persona descriptions, suggesting these prompt components can be omitted to reduce computational costs without sacrificing accuracy. Our results provide evidence that GPT-4o can achieve competitive forecasting accuracy even on out-of-sample macroeconomic events, if provided with relevant context data, while revealing that diverse prompts produce remarkably homogeneous forecasts compared to human panels.
Key facts. Cited by 4 papers in the map (data through 7 Oct 2026). Builds on 8 of its 25 references that are in the map. First posted on arXiv 4 Nov 2025.
Builds on
8 of 25 references.
References · 8
- 2023Quantifying Language Models' Sensitivity to Spurious Features in Prompt Design or: How I learned to start worrying about prompt formattingcited by 778
- 2022Out of One, Many: Using Language Models to Simulate Human Samplescited by 737
- 2024Scaling Synthetic Data Creation with 1,000,000,000 Personascited by 397
- 2023Better Zero-Shot Reasoning with Role-Play Promptingcited by 220
- 2024Are Language Models Actually Useful for Time Series Forecasting?cited by 163
- 2023Questioning the Survey Responses of Large Language Modelscited by 70
- 2024Large Language Models: An Applied Econometric Frameworkcited by 30
- 2024Are Large Language Models Chameleons? An Attempt to Simulate Social Surveyscited by 8
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Citing papers per year: 2026: 4.
4 papers.
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- 2026Can LLMs Take the Pulse of the Economy? A Real-Time Evaluation of LLM Nowcasts on Macroeconomic Indicators31 Aug 2026
- 2026From Economic Agents to Agentic Economies: A Systems Blueprint for Economic World Models6 Aug 2026
- 2026Nous: An Attempt to Extract and Inject the Cognition Behind Prediction-Market Behavior11 Jun 2026