The line dividing this two field is actually very vague.
But technically speaking, the major difference between this two subjects will be their viewpoints: while they both deal with monetary issues, economist generally stand on a neutral stand predicting trends, making rational decisions and analyzing world market's interaction; while financial analyst typically works for a particular agency or institution and their job scope includes formulating sound marketing strategies, forecasting business outlook, monitoring the company's performance and health, and most importantly financial modelling.
When bringing it down to the micro-levels, the distinction will be blurry as microeconomics and econometrics deals very much with similar issues as financial analysis.
One may be involved in the aspect of common-sensicle and rational study of past patterns, while the other more technical and bold projection of future trends. One deals more often with data, the other risks.
However, both fields are found in the same market. Furthermore, financial health of a company is very much related to the economic well-being of the country, region and even the world; whereas international economics is very much influenced by financial performances of MNCs. Without economist, the finance sector will not survive; and the reverse is conversely true.
(There is a significant difference between economics and finance. To understand the differences we must understand each of the categories and learn their fundamental principles.
Finance is a fund management science. There are three general areas of finance : business finance, public finance and personal finance. The basic principle of finance is saving money and lending money. These operations are accomplished with the help of financial institutions. The science of finance deals with the interrelation of the concepts of time, risk and money.
Economics is a social science. The science of economics studies the production, consumption and distribution of services or goods. The science of economics is trying to explain how economies work and how do different economies interact. The analysis of the science of economics is applied in various fields like finance, business, government, education, law, politics, social institutions, science and many more.
The main difference between economics and finance is that finance focuses entirely on the maximization of wealth. On contrary to the finance, economics focuses on the optimization of valued goals. If we understand the facts this way we can say that finance is a subset of economics.
Finance is focusing on the management of money and assets. Financial courses are teaching how asset market works and economics courses are teaching optimization rather than focusing. The terms of finance and economics are often used in everyday speak and press interchangeably. The best words for describing these sciences would be socio economics and socio finance. The word socio would describe the social aspects of the problem.
Using only the basics from both economics and finance, we can say that finance is the study of the financial markets. The financial markets are coordinating the interests of the lenders and borrowers that are doing business in the market. The study of economics is more the study of the goods and services which are circulating in the same market.)
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