Forecasting with fable and with multiple independent variables

  1. You will need to either (1) omit variables for which you cannot provide future values, (2) forecast them separately, or (3) provide scenario values for them. See https://otexts.com/fpp3/forecasting-regression.html. Using a mean or median of the historical data is one possible way of forecasting them, but it may not be the best.
  2. Minimize the AIC is best. PCA can also be effective but does not guarantee you the best predictive variables.