IGCSE Economics 0455/13 & 0455/23 October/November 2025 Analysis

The October/November 2025 series for Cambridge IGCSE Economics presents a very well-rounded assessment of both microeconomic fundamentals and macroeconomic policies. Overall, the papers rate as moderate in difficulty, offering accessible entry points alongside testing analytical questions that require precise economic reasoning rather than generic observations.

Where the Marks Lie

The weight of the assessment continues to be concentrated in core areas like Workers and Labour Markets, Money and Banking, and Market Structures. In Paper 2, candidates were tested on their ability to explain complex mechanisms, such as why firms charge different prices in different countries (price discrimination) and whether consumers benefit from small firms. In the compulsory Section A (Malawi case study), data interpretation was highly critical, with key marks allocated to explaining PPC contractions due to natural disasters and drawing a clear demand and supply diagram showing a leftward demand shift for sugar following negative health reports.

Crucial Pitfalls Identified by Examiners

Examiners highlight several persistent errors that cost students significant marks:

  • Reversed Exchange Rate Analysis: When discussing whether governments should stop currency depreciation, many candidates provided incorrect analysis, completely reversing the impacts of a weaker currency on import and export prices and inflation.
  • Superficial Contrast Points: In questions comparing central banks and commercial banks, candidates often lost marks by stating negative points (e.g., 'central banks control money supply but commercial banks do not') instead of providing a direct, positive contrasting difference.
  • Vague Definitions: Defining 'primary income' proved to be a major hurdle, with very few candidates recognizing it as a key component of the current account containing returns on factors of production located abroad.
  • Agent Neglect: When analysing how opportunity cost influences decisions, candidates frequently failed to address all three required economic agents (consumers, workers, and producers), restricting their maximum achievable mark.

Key Strategies for Success

To secure a top grade, students must adopt a rigorous structural approach to Paper 2 questions:

  1. For Analyse questions, build clear chains of cause and effect (e.g., link consumer spending to demand, then to firm output, then to investment, and finally to real GDP growth).
  2. For Discuss questions, always present a balanced argument covering both sides (for and against) with a concluding evaluative judgment where appropriate. Do not repeat the same argument on both sides.
  3. Ensure that all demand and supply diagrams feature fully labelled axes, original curves, shifted curves, and clearly marked equilibrium points.

Upcoming Focus Predictions

In the next series, we expect a strong return of Price Elasticity of Demand (PED) calculations and diagrams, as well as a deeper focus on specific Fiscal Policy tools like progressive taxation and national debt. Make sure to master the four main sub-accounts of the Current Account of the Balance of Payments, as the examiners are increasingly targeting these precise, technical components.