The gravitational field equations on cosmological scales are obtained by averaging the Einstein field equations of general relativity. By assuming spatial homogeneity and isotropy on the largest scales, the local inhomogeneities affect the dynamics though correction (backreaction) terms, which can lead to behaviour qualitatively and quantitatively different from the Friedmann-Lema^{i}tre-Robertson-Walker models. The effects of averaging on cosmological observations are discussed. It is argued that, based on estimates from observational data, the backreaction (and, in particular, the averaged spatial curvature) can have a very significant dynamical effect on the evolution of the Universe and must be taken into account in observational cosmology.