New syllabus

• Unit 1.1 has been renamed as "The nature of the basic economic problem" (previously called "The nature of the economic problem").
• Unit 1.1.1. now includes "the concept of scarcity" as an explicit learning outcome.
• Unit 1.1.2 (Resource allocation decisions) has been added. This explicitly addresses the three basic economic questions which determine resource allocation: (i) what to produce, (ii) how to produce, and (iii) who to produce for?
• The mobility of the factors of production (previously in Unit 1.2.2) has been removed from the syllabus. The mobility of labour is still covered in the new syllabus (in Unit 3.3.4), i.e., there is no longer the need to teach the mobility of capital, land, and enterprise.

• Unit 2.1 is now "The role of markets in allocating resources" (legacy Unit 2.2). However, the former Unit 2.1 ("Microeconomics and macroeconomics") has been removed from the syllabus. Other changes to Unit 2.1 are outlined in Table 3 below.

Table 3 - Unit 2: Outgoing (Legacy) syllabus vs New syllabus

• Unit 2.4 The price mechanism (previously in Unit 2.2.3) has been moved to Unit 2.4.2.
• Unit 2.6.2 (Calculation of PED) and Unit 2.7.2 (Calculation of PES) - The new syllabus includes reference to the terms: (i) perfectly inelastic, (ii) unitary elastic, and (iii) perfectly elastic.
• Unit 2.6.5 (Significance of PED) - The implications of PED for decision-making now include workers.
• Unit 2.7 Price elasticity of supply (PES) - The implications for decision making by consumers, producers and government has been removed (legacy Unit 2.8.4).
• Legacy Unit 2.10.1 (Definition of market failure) has been made clearer in the new Unit 2.9.2 (Definitions of terms associated with market failure). These definitions now include “monopoly” as a tenth item in addition to (i) public goods, (ii) merit goods, (iii) demerit goods, (iv) private benefits, (v) external benefits, (vi) social benefits, (vii) private costs, (viii) external costs, and (ix) social costs.
• Unit 2.9.3 (Causes of market failure) - "factor immobility" (legacy 2.10.2) has been removed as a cause of market failure.
• Unit 2.9.4 (Consequences of market failure) - Two additional implications of misallocation of resources have been added to the syllabus in relation to: (i) the non-provision of public goods, and (ii) restricted supply causing higher prices under a monopoly.
• Unit 2.10.2 (The advantages and disadvantages of the mixed economic system) - The learning outcome "Arguments for and against the mixed economic system" has been added to the new syllabus.
• Unit 2.10.2 has removed the minimum wage diagram (as part of government intervention to address market failures in legacy Unit 2.11.2). However, this has been moved to Unit 3.3.2 (Wage determination). Note that the minimum wage diagram is now explicitly mentioned in this section of the syllabus. i.e., drawing and interpretation of diagrams that illustrate the effects of national minimum wages.
• Unit 2.10.3 (Government intervention to address market failure) has been simplified with "the effects of maximum and minimum prices in labour and foreign exchange markets removed (only the effects of maximum and minimum prices in product markets remains). In addition, "The effectiveness of government intervention in overcoming the drawbacks of a market economic system" has been removed from the syllabus.
• Unit 2.10.3 (Government intervention to address market failure) - Regulation, privatisation, nationalisation, direct provision of goods and services, and quotas (such as for the extraction of natural resources) have been added to the syllabus as methods of government intervention to address market failures. Candidates are expected to provide definitions, advantages, and disadvantages for each of these.

Quotas are often imposed on the extraction of natural resources, such as minerals and fossil fuels

• Unit 4.1 in the previous syllabus ("The role of government") has been removed from the new syllabus. This means the previous learning outcome "the role of government (locally, nationally, and internationally)" is not in the new syllabus.
• Unit 4.1 is renamed as "Government macroeconomic intervention" (which was formerly called "The macroeconomic aims of government" in Unit 4.2 of the previous syllabus).
• There are now six macroeconomic aims in Unit 4.1.1, with "environmental sustainability" added to the syllabus. This includes "economic growth and environmental sustainability" as a possible conflict between two of the government's macroeconomic aims (this replaces "economic growth versus balance of payments stability" in the previous syllabus). This is a much-needed addition to the syllabus. As famously stated about climate change by Ban Ki-moon, former UN Secretary-General, "we have only one planet... we don’t have plan B because there is no planet B."
• Unit 4.1.1 combines both macroeconomic aims and possible conflict (formerly covered as a separate topic in legacy Unit 4.2.2 - Possible conflicts between macroeconomic aims. In addition, “economic growth and  environmental sustainability” has replaced “economic growth and balance of payments stability” as a possible conflict between government macroeconomic aims.
• Unit 4.2.1 (Government budget) - Definitions of both government budget deficit and government budget surplus have been added to the syllabus.
• Unit 4.2.1 (Government budget) - This section of the new syllabus also now requires students to calculate the size of a government budget (deficit/surplus).
• Unit 4.2.2 (Reasons for government spending) - The reasons for and effects of government spending are in this section of the new syllabus (previously, the syllabus only covered the reasons for government spending).
• Unit 4.2.3 (Taxation) - This section was previously called “Reasons for taxation” but has been simplified as just “Taxation”. The (six) reasons for taxation are now explicitly stated in the syllabus: (i) raising revenue, (ii) discouraging consumption of demerit goods, (iii) reducing imports, (iv) redistributing income, (v) influencing total demand, and (vi) encouraging environmental sustainability. The legacy Unit 4.3.2 was vague on the reasons for government spending: “Taxation as the main source of government revenue and the reasons for levying taxation.”
• Unit 4.3.5 of the old syllabus (The principles of taxation) has been removed. This means there is no need to teach the qualities of a good tax.
• Unit 4.4.2 (Supply-side policy measures) now includes “infrastructure spending” - there is no reference to infrastructure or infrastructure spending in the legacy syllabus.
• Unit 4.5.2 (Measurement of economic growth) - GDP per head (capita) has been removed as a measurement of economic growth (as appeared in legacy Unit 4.6.2). Only real gross domestic product (GDP) needs to be taught in the new course. However, note that “real Gross Domestic Product (GDP) per head” remains in Unit 5.1.1 (Indicators of living standards).
• Unit 4.5.3 (Causes and consequences of economic growth) - The new guide has removed references to the PPC as well as “changes in investment, technology”. The table below highlights the differences:

Table 4 - Comparing learning outcomes for the causes of economic growth

• In addition, for Unit 4.5.3 (Consequences of economic growth), the wording has been simplified from "The costs and benefits of economic growth in the context of different economies." (legacy Unit 4.6.5) to “advantages and disadvantages of economic growth”.
• Unit 4.5.4 (Causes and consequences of recession) - The following changes have been made:

1. The definition of recession is now explicitly in the syllabus (the previous syllabus referred to the “meaning of recession” in legacy Unit 4.6.3).
2. The causes of recession are now stated clearly as: (i) a decrease in total demand, (ii) a decrease in the quantity of
   resources, and (iii) a decrease in the quality of resources. The legacy syllabus only stated “The causes of recession”.
3. The consequences of recession are now stated clearly for different stakeholders: (i) consumers, (ii) workers, (iii) producers/firms, and (iv) the government. The legacy syllabus only stated “The consequences of recession”.
4. The learning outcome “how a recession moves the economy within its PPC” has been removed from the new syllabus.

• Unit 4.6.2 (Measurement of unemployment) - The claimant count as a measurement of unemployment (legacy Unit 4.7.3) has been removed. Only the labour force survey is now taught in Unit 4.6.2 (Measurement of unemployment).
• Unit 4.6.3 (Causes/types of unemployment) - Seasonal unemployment has been added as a fourth type of unemployment. This is in addition to (i) frictional unemployment, (ii) structural unemployment, and (iii) cyclical unemployment.

Examples of markets that experience seasonal unemployment include retail, tourism, agriculture, and hospitality

• Changing patterns and level of employment (legacy Unit 4.7.2) has been removed.
• Unit 4.7 is renamed and simplified as "Inflation". It was previously called "Inflation and deflation". Deflation is no longer covered beyond the definition, i.e., there is no need to teach the causes and consequences of deflation or the government policies used to tackle deflation (legacy Unit 4.8.2 to 4.8.5).

• Unit 6.1 is renamed as "Specialisation and free trade" (which was previously called "International specialisation"). Hence, free trade (including the advantages and disadvantages) has moved from Unit 6.2.
• Unit 6.1.1 (Specialisation by country) - Candidates are now expected to be able to define “specialisation by country”. In addition, the wording "advantages and disadvantages of specialisation at a national level" (legacy 6.1.2) has been changed to “advantages and disadvantages of specialisation”.
• Unit 6.1.2 (Free trade) - The definition of “free trade” is now explicitly mentioned in the syllabus. In addition, the disadvantages of free trade have been added (previously, only the benefits of free trade were mentioned).
• Unit 6.2 is renamed as "6.2 Globalisation and trade restrictions" (which was previously called "Globalisation, free trade and protection").
• Unit 6.2.2 is a completely new topic in the syllabus and covers the following : (1) causes of changes in globalisation, and (2) effects of changes in globalisation. The specific points are as follows:

1. Causes of changes in globalisation:
   - changes in trade restrictions
   - changes in transport costs
   - changes in communication costs
   - movement of multinational companies (MNCs)
2. Effects of changes in globalisation:
   - international trade
   - competition
   - the environment
   - migration
   - income distribution
   - economic development.
   Previously, only the definition of globalisation was required.

• Unit 6.2.5 (Reasons for trade restrictions) - There is now explicit reference to the protection of sunrise (infant) industries and sunset (declining) industries. This unit also now includes four additional reasons for trade restrictions:

1. to reduce a deficit on the current account of the balance of payments
2. to raise tax revenue
3. to restrict the import of demerit goods
4. to promote environmental sustainability.

This is in addition to the four reasons given in the legacy syllabus: (i) protect infant (sunrise) industries, (ii) protect declining (sunset) industries, (iii), protect strategic industries, and (iv) avoid dumping.

• Unit 6.2.6 (Consequences of trade restrictions) - The advantages and disadvantages of restricting free trade have been added to this section of the syllabus, in addition to the learning outcome “impact of trade restrictions on the home country and its trading partners”, which also featured in legacy Unit 6.2.6 (Consequences of protection).
• Unit 6.3.2 (Reasons for buying and selling foreign currencies) is new content, covering the following reasons for buying and selling foreign currencies:

1. trade in goods and services
2. speculation (in currency markets)
3. government intervention in currency markets
4. payment of profit, interest, and dividends between countries
5. workers’ remittances (money sent from overseas workers or incomes earned abroad)
6. investment in capital goods between countries.

Filipino migrant workers in Hong Kong

• Unit 6.3.3 (Determination of foreign exchange rate in foreign exchange market) - The entry or departure of MNCs has been removed from the syllabus as a determinant of foreign exchange rates. In addition, fixed exchange rates have been removed (legacy Units 6.3.1 and 6.3.5). However, note that government intervention in currency markets is still covered in Topic 6.3.2 (Reasons for buying and selling foreign currencies). Nevertheless, there is no need to cover fixed exchange rates.
• This means that the learning outcome for legacy Unit 6.3.5 (Floating and fixed foreign exchange rates) has been removed, i.e., there is no longer the need to teach "The difference between, and the advantages and disadvantages of, a floating foreign exchange rate and a fixed foreign exchange rate system".
• Also note that in the new Unit 6.3.3, the terms “appreciation”and “depreciation” have been added. For this section of the syllabus, candidates are now expected to be able to define (i) floating exchange rate, (ii) appreciation, and (iii) depreciation.

Resources for the new syllabus

InThinking IGCSE Economics provides teachers with time-saving resources that make your lesson planning significantly easier and enage your learners. Key features of the website include:

• Detailed content coverage of the new syllabus (first teaching 2025) - use the website as an e-book.
• A comprehensive glossary of IGCSE Economics key terms.
• Self-marked Multiple Choice Questions provide students with opportunities to prepare for Paper 1
• A growing number of Paper 2 Exam practice questions
• Embedded educational videos, many with accompany worksheets
• Classroom activities to engage student learning
• Exam tips and common mistakes to avoid in the examinations
• Weekly updates, 52 weeks a year
• Monthly Newsletters providing subscribers with regular updates and additional advice
• Free access to all students in subscribing schools.

InThinking IGCSE Economics is used by 171 teachers and 1475 students in 36 countries. Please note that your Cambridge IGCSE students can have completely free access to the website once you have activated Student Access.

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You can also register other teachers in your school to gain access to the website, which is updated every week, 52 weeks a year. Therefore, the annual subscription represents extremely good value for money and will save you hundreds of hours of planning:

Content on the website exceeds 720 000 words. To put this into context, a 320-page IGCSE Economics textbook is typically around 165 000 words. InThinking IGCSE Economics includes more than 380 interactive quizzes, 800 interactive auto-marked MCQs, revision flash cards covering the entirety of the syllabus, and exam practise questions and mark schemes for both Paper 1 and Paper 2.

There is also a glossary of key terms with 315 definitions to support students in their learning of Economics vocabulary for the course.

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Whilst InThinking IGCSE Economics will remain the single most comprehensive resource available for the new IGCSE Economics course, teachers and students may be interested in the Cambridge-endorsed resources below.

The InThinking IGCSE Economics website will be fully revised and updated to match the requirements of the new syllabus, incorporating all of the changes outlined on this site page, and ready for first teaching in August 2025.

The 3rd edition Hachette Learning (formerly Hodder Education) textbook (ISBN-13: 9781036010737) is endorsed by Cambridge Assessment International Education (CAIE) and has been updated to support the new syllabuses for first examinations from 2027. Details of the new textbook can be found on the publisher's website here. 

The textbook, published in March 2025, enables students to explore Economics as a real-world subject through updated case studies from around the world. The new edition provides in-depth coverage of the revised Cambridge IGCSE™, IGCSE (9-1) and O Level Economics syllabuses (0455/0987/2281). It provides accessible content for all learners, with updated practice questions, ESL-friendly content, and an improved structure.

Answers to all the exam practice questions and class activities are available to download free from the publisher's website here.

The textbook is also available for purchase here on Amazon.

The 3rd edition workbook in paperback (ISBN-13: 9781036010751) is fully endorsed by Cambridge Assessment International Education. Details can be found on Hachette Learning's website here.

The updated workbook is an ideal course companion or homework book for use throughout the course. It reinforces learning and deepens understanding of the key topics covered in the latest Cambridge IGCSE™, IGCSE (9-1) and O Level Economics syllabuses (0455/0987/2281). The workbook consolidates knowledge and skills with updated exercises based on authentic and up-to-date contexts and problems.

All answers available free from the publisher's website here.