IGCSE Economics 2025: Exam Performance Analysis

The October/November 2025 examination series for Cambridge IGCSE Economics (0455) presented a well-balanced but highly analytical set of papers. Paper 1 (Multiple Choice) tested candidates on fine-grained distinctions and diagrammatic interpretation, while Paper 2 (Structured Questions) required deep logical reasoning, particularly in evaluating policy interventions and macroeconomic trade-offs.

Difficulty Verdict

We rate this paper set at a 3.2 out of 5 in terms of difficulty. While the recall-based questions were highly accessible, the analytical questions—especially those featuring multiple diagrammatic shifts or multi-step macroeconomic linkages—posed a stern challenge for average candidates. In Paper 1, questions involving foreign exchange adjustments (Q29) and market disequilibrium (Q6) required meticulous logical steps. In Paper 2, Section A's focus on the Swiss economy was highly topical, demanding a strong grasp of exchange rates, interest rate implications, and banking mergers.

Where the Marks are Won or Lost

The highest concentrations of marks are located in the structured discussion questions (the 8-mark questions in Section B) and the 6-mark analysis questions.

  • The 8-Mark Discuss Questions: Candidates often lost marks by offering one-sided arguments. To score in Level 3 (6–8 marks), a balanced debate must be presented with clear, reasoned chains of economic analysis on both sides.
  • The 6-Mark Analyse Questions: These questions require direct causal chains. For instance, in Q2(c) analyzing housing price increases, candidates who failed to frame their response explicitly around supply and demand factors limited their maximum marks to 4.
  • Diagram Accuracy: In Q1(d), drawing a subsidy diagram, precision is key. Missing labels on axes or failing to indicate the direction of the supply curve shift easily cost candidates easy marks.

Common Examiner Pitfalls & Student Misconceptions

The examiner report highlights several areas of recurring confusion:

  • Monetary vs. Fiscal Policy: Confusing the tools of the central bank (interest rates, money supply) with government tools (taxation, spending) remains a common error.
  • Deflation vs. Disinflation: Many candidates struggle with the concept of deflation, mistakenly defining it as a fall in the rate of inflation rather than a sustained decrease in the general price level.
  • The "Own Figure Rule" in Calculations: In numerical tasks, candidates should always write down their workings. If an early step is incorrect, but subsequent calculations are correct based on that figure, full credit can still be awarded for the method.

Strategic Advice for Future Candidates

To excel in 0455 Economics, adopt these preparation strategies:

  1. Master Command Words: Recognize that 'Identify' requires brief points, 'Explain' requires a point and a brief reason, 'Analyse' requires a logical chain of causes, and 'Discuss' requires a balanced multi-perspective argument.
  2. PPC and Market Diagrams: Practice drawing clean, fully labelled diagrams. Remember that a change in productivity moves the PPC, whereas a recession is a movement to a point inside the PPC.
  3. Develop Chain of Reasoning: When explaining policy effects, do not just state the final outcome. Trace it step-by-step (e.g., lower income tax → higher disposable income → increased consumer spending → higher aggregate demand → economic growth).