Which section of a CAFR is particularly important for evaluating a government's economic condition?

The statistical section of a Comprehensive Annual Financial Report (CAFR) is crucial for evaluating a government's economic condition because it provides a wealth of quantitative data that goes beyond the financial statements. This section typically includes a variety of historical data and trends regarding the government’s financial position, demographic information, socio-economic indicators, and various performance measures.

By presenting this data over multiple years, the statistical section allows users to analyze trends in revenues, expenditures, and other significant financial metrics. It helps assess important aspects such as population growth, economic factors, employment rates, and the overall fiscal health of the government. Such information is vital for stakeholders, including investors, policymakers, and the public, as it aids in understanding how well a government is managing its resources over time and how it is positioned for future economic challenges.

In essence, the statistical section complements the financial section by putting the numbers into context, thereby giving a clearer picture of the government's economic condition and its ability to deliver services and meet its obligations.