Overall Verdict & Performance Overview

The Cambridge IGCSE Economics (0455) May/June 2026 series was accessible yet rigorously tested precision in economic definitions, numerical interpretation, and two-sided evaluative chains. Both Paper 1 and Paper 2 adhered closely to syllabus conventions, offering balanced topic coverage across all major units.

Where the Marks Were Won and Lost

In Paper 1, questions involving straightforward definitions and standard graphical shifts (such as substitute pricing effects and supply curve extensions) saw high accuracy. However, calculation items like determining the unemployment rate from labour market breakdowns (Question 23) and identifying disinflation versus deflation (Question 24) required precise reading of definitions.

In Paper 2, Section A presented a highly accessible calculation in 1(a) (calculating the current account surplus as \( \frac{64}{160} \times 100 = 40\% \)) and a standard 4-mark tax diagram in 1(e). Marks were frequently lost in 1(f) when candidates failed to provide explicit comparative data or discuss anomalies in the youth unemployment trend. In the 8-mark 'Discuss' questions across Section B (Questions 2(d), 3(d), 4(d), and 5(d)), top candidates achieved Level 3 by providing balanced arguments with explicit application to the given context, whereas lower-scoring scripts offered one-sided assertions or mirrored points without separate development.

Key Examiner Pitfalls

  • Definitional imprecision: Confusing a fall in the inflation rate (disinflation) with an actual decrease in the general price level (deflation).
  • Diagram mechanics: Omitting axis labels (Price and Quantity) or forgetting to shift supply leftwards with clear equilibrium points \(P_1, Q_1\) and \(P_2, Q_2\) in indirect tax questions.
  • Listing without economic links: In 6-mark 'Analyse' questions, providing a list of reasons without explaining the economic chain of causation (e.g., explaining how exchange rate depreciation translates to demand-pull or cost-push inflation).
  • Evaluation symmetry: Giving mirror arguments (e.g., 'costs rise' vs 'costs do not rise') instead of distinct economic mechanisms for both perspectives in Level-of-Response questions.

Preparation & Strategic Advice

Master multi-step chains of reasoning: connect policy interventions directly to intermediate indicators before concluding on macroeconomic aims. For data response questions, always quote units and comparative pairs when analysing trends.