The economy and money vocabulary: the words that lift a frequent topic.
The economy, money and inequality run through Task 2 and Part 3, from growth and inflation to the wealth gap. The ideas are familiar; the marks are in precise, topic-specific language. Swap the everyday word for the right collocation and the same point reads a band higher.
Why this matters. Lexical Resource is a quarter of your mark, and on a familiar topic the examiner has read the plain version a thousand times. The lift is not rarer words; it is accurate collocation used naturally. A common phrase used correctly beats a showy word used wrongly, every time.
Four clusters that cover most Economy questions.
You do not need a glossary. You need a handful of accurate collocations in each of these areas, ready to deploy.
Growth & the economy
economic growth · gross domestic product (GDP) · a recession · a booming economy
The health of an economy, the base lexis.
The economy returned to growth after the recession.
Work & wages
employment · wages and salaries · the cost of living · disposable income
How people earn and spend, a common line.
Rising living costs outpace wage growth.
Money & finance
save and invest · household debt · interest rates · inflation
Personal and national finance, where Part 3 reaches.
High inflation erodes the value of savings.
Wealth & inequality
the wealth gap · redistribute wealth · poverty · a fair distribution
How wealth is shared, where Task 2 lands.
Progressive taxation can narrow the wealth gap.
Use the precise financial noun
The weak answer says “the country has money problems”. The lift is the exact term: a recession, inflation, household debt, the cost of living. One accurate noun signals real control of the topic.
The same point, from Band 6 to Band 8.
At Band 5
The economy is discussed with very general words (money, rich, poor, expensive), with vague verbs (the country has no money). Precise terms (inflation, recession) are missing.
At Band 6
“When prices go up, people have less money to spend and the country’s economy gets weaker.” The idea is fine, but general.
At Band 7
“Rising inflation reduces disposable income, which in turn dampens consumer spending and slows economic growth.” Topic collocations (inflation, disposable income, economic growth) carry real information.
At Band 8+
“While economic growth raises average incomes, its benefits are unevenly distributed, and without redistribution the wealth gap tends to widen.” Precise lexis, abstraction, and a controlled complex sentence.
The upgrade most worth making.
Each swap takes a vague, everyday phrase and replaces it with the collocation an examiner expects on this topic. Use them where they fit naturally, not all at once.
| Instead of… | Use… | For example |
|---|---|---|
| money problems in a country | a recession / economic downturn | The country slipped into recession. |
| prices going up | inflation | Inflation reached a ten-year high. |
| the economy getting bigger | economic growth | Economic growth boosts employment. |
| money left after bills | disposable income | Higher taxes reduce disposable income. |
| how expensive life is | the cost of living | The cost of living has risen sharply. |
| gap between rich and poor | the wealth gap / inequality | Policy can narrow the wealth gap. |
| money people owe | household debt | Household debt is at record levels. |
| share wealth more evenly | redistribute wealth | Progressive taxes redistribute wealth. |
Two cautions. Keep it impersonal and precise, avoid “the country has no money”. And do not confuse terms: inflation is rising prices, a recession is falling output. For the general method, see vocabulary & cohesion →
Ten to drill.
Choose the more precise, topic-appropriate option for each gap. Press Check answers for your score and the reason behind each one. Nothing is sent anywhere.
You can collect topic words. Using the right one, accurately, under timed pressure is the work.
Memorised “big” words used wrongly cost marks; precise collocations used naturally earn them, and the difference is hard to judge in your own writing.
In a lesson I mark your topic vocabulary the way an examiner does, where a collocation is exactly right, where it is forced, and where a plain word would have been stronger. Lessons are £20 for fifty minutes, one to one, in proper British English; the first step is a free 25-minute introduction. This page is drawn from the vocabulary work in the forthcoming Ultimate Guide to IELTS Speaking.