In this English vocabulary lesson you will learn some of the main words we use in English to talk about the economy.
The economy is a very popular topic that is in the news every day.
Being able to speak about the economy will help you improve your fluency and conversation skills in English.
In most democratic countries the government has to have a budget in order to run the country.
How rich a country is will determine its budget.
Inflation is a problem when your currency is weak and the prices of goods starts to rise and the value of money starts to fall.
The Central Bank controls money supply, interest rates and a country’s currency.
If a country has a Credit crisis or credit crunch it means that loans are limited and banks and consumers have difficulty to access money. C
If you have a high Standard of living it means that you have access to all the things you need to love comfortably and well.
Public or private
We can divide the economy into the public sector (government) and the private sector.
One of the most important words we hear when we talk about the economy is growth. Economies need to grow.
If an economy does not grow it will go into recession. People will lose their jobs and their standard of living will decrease.
Maybe a country has too much external debt. This can happen when a country borrows too much money from other countries.
A country’s GDP (Gross Domestic Product) can tell us how rich a country is. Countries with a hight GDP often have a high standard of living and good quality of life.
Please watch the video for more definitions.
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