IELTS vocabulary
IELTS economy vocabulary
Words for money, trade, growth and spending, useful for essays on business and for describing figures in Task 1.
Each entry has the typical band it's useful for, a plain meaning, an example sentence and the words it most often goes with. Learn the collocations along with the word: that's what makes vocabulary sound natural.
Band 6 words
boom noun
A period of rapid growth or success in an economy or industry.
A boom in online shopping has increased demand for delivery services.
Collocations: economic boom · a boom in · experience a boom
budget noun
A plan showing how much money is available and how it will be spent.
A carefully planned budget allows households to manage rising expenses more effectively.
Collocations: government budget · balanced budget · budget allocation
competition noun · academic
A situation in which businesses try to attract the same customers.
Healthy competition can encourage firms to improve the quality of their products.
Collocations: market competition · competition between firms · face competition
consumer noun
A person who buys or uses goods and services.
Consumers are increasingly willing to pay more for products made with sustainable materials.
Collocations: consumer choice · consumer confidence · consumer spending
cost of living noun phrase
The amount of money needed for basic expenses such as food, housing and transport.
When the cost of living rises faster than wages, many families have less money for savings.
Collocations: rising cost of living · cost of living crisis · cost of living pressures
debt noun
Money that a person or organisation owes to someone else.
Excessive household debt can leave families vulnerable to unexpected expenses.
Collocations: government debt · repay debt · debt burden
economic growth noun phrase · academic
An increase in the amount of goods and services an economy produces over time.
Economic growth can create jobs, but its benefits are not always shared equally.
Collocations: economic growth rate · sustain economic growth · economic growth
export verb · formal
To sell goods or services to another country.
Small firms can export specialised products by using online marketplaces.
Collocations: export goods · export products · export to new markets
import verb · formal
To buy goods or services from another country.
Some businesses import raw materials because they are unavailable locally.
Collocations: import goods · import products · import from overseas
inflation noun · academic
A general increase in prices that reduces the purchasing power of money.
Persistent inflation can make essential goods unaffordable for households on fixed incomes.
Collocations: rising inflation · control inflation · inflation rate
investment noun · academic
Money or resources put into something to produce future profit or benefit.
Investment in renewable energy can create jobs while reducing long-term environmental costs.
Collocations: foreign investment · investment in infrastructure · investment returns
living standards plural noun phrase · academic
The level of comfort and access to goods and services that people have.
Better healthcare and education can improve living standards across a community.
Collocations: improve living standards · raise living standards · declining living standards
mortgage noun
A loan used to buy property, usually repaid over many years.
High housing prices can force first-time buyers to take out a large mortgage.
Collocations: take out a mortgage · mortgage payments · mortgage lender
productivity noun · academic
The amount of output produced compared with the resources or time used.
Better training can raise productivity by helping employees complete tasks more efficiently.
Collocations: labour productivity · increase productivity · productivity growth
retail noun
The sale of goods directly to the public, usually in shops or online.
Retail has changed considerably as consumers increasingly shop through websites and apps.
Collocations: retail sector · retail prices · retail business
unemployment noun · academic
The state of being without paid work while seeking employment.
High unemployment can lead to financial hardship and weaken people's sense of social connection.
Collocations: high unemployment · unemployment rate · tackle unemployment
wage noun
A fixed amount of money paid to a worker, usually by the hour or week.
A higher minimum wage could improve living standards for low-paid workers.
Collocations: minimum wage · wage growth · wage inequality
workforce noun
The people who are employed by an organisation or available to work.
A skilled workforce can help businesses adapt to changes in technology and demand.
Collocations: skilled workforce · workforce training · workforce development
Band 7 words
affordability noun · formal
The extent to which people can pay for something.
Improving housing affordability should be a priority in cities where rents are rising rapidly.
Collocations: housing affordability · affordability crisis · improve affordability
bankruptcy noun · formal
A legal situation in which a person or business cannot repay its debts.
Without access to affordable loans, some small businesses may face bankruptcy.
Collocations: declare bankruptcy · face bankruptcy · bankruptcy proceedings
black market noun phrase · formal
An illegal system for buying and selling goods or services.
Strict controls can sometimes encourage the black market rather than eliminate illegal trade.
Collocations: black market trade · black market prices · operate on the black market
consumption noun · academic
The use of goods and services by people or businesses.
Reducing household energy consumption can lower bills and help limit carbon emissions.
Collocations: energy consumption · household consumption · consumption of goods
deficit noun · academic
The amount by which spending is greater than income over a particular period.
A growing budget deficit may force the government to borrow more or reduce spending.
Collocations: budget deficit · trade deficit · reduce the deficit
disposable income noun phrase · academic
The money left after taxes and essential costs have been paid.
When disposable income rises, households may spend more on leisure and travel.
Collocations: higher disposable income · disposable income levels · increase disposable income
downturn noun · formal
A period when economic activity becomes weaker or declines.
During an economic downturn, many households reduce spending on non-essential items.
Collocations: economic downturn · a downturn in · suffer a downturn
e-commerce noun · academic
The buying and selling of goods or services over the internet.
E-commerce allows small firms to reach customers far beyond their local area.
Collocations: e-commerce platform · e-commerce business · growth in e-commerce
enterprise noun · formal
A business or organisation, especially one involving initiative and risk.
Small enterprises play an important role in creating jobs and supporting local communities.
Collocations: small enterprise · private enterprise · enterprise development
entrepreneur noun · formal
A person who starts and runs a business, usually taking financial risks.
An entrepreneur may create employment by turning an innovative idea into a viable business.
Collocations: successful entrepreneur · young entrepreneur · entrepreneurial skills
expenditure noun · formal
The money spent by a person, organisation or government.
Public expenditure on preventive healthcare may reduce the need for costly treatment later.
Collocations: public expenditure · government expenditure · expenditure on education
fiscal adjective · formal
Related to government income, spending and taxation.
A sound fiscal policy can help maintain public services without creating excessive debt.
Collocations: fiscal policy · fiscal deficit · fiscal year
free trade noun phrase · academic
Trade between countries with few or no restrictions, such as tariffs or quotas.
Free trade can lower prices, although it may expose domestic businesses to stronger competition.
Collocations: free trade agreement · promote free trade · free trade policy
incentive noun · formal
Something that encourages a person or business to act in a particular way.
Offering tax incentives may encourage companies to adopt cleaner production methods.
Collocations: financial incentive · tax incentive · incentive to invest
income tax noun · formal
A tax paid by individuals on their earnings and other income.
A progressive income tax can help fund public services while reducing income inequality.
Collocations: income tax rate · pay income tax · income tax revenue
interest rate noun phrase · formal
The percentage charged for borrowing money or paid on savings.
A higher interest rate can make borrowing more expensive for households and businesses.
Collocations: interest rate rise · interest rate policy · set an interest rate
labour noun · academic
Workers considered as a group, or the effort they provide.
Labour costs can influence where a company chooses to manufacture its products.
Collocations: labour costs · labour market · labour shortage
lucrative adjective · formal
Producing a large amount of money or profit.
Although the industry can be lucrative, it may also involve considerable financial risk.
Collocations: lucrative business · lucrative opportunity · highly lucrative
manufacturing noun · academic
The process of making products, usually in factories and from raw materials.
Investment in advanced manufacturing could increase output while reducing waste.
Collocations: manufacturing industry · manufacturing process · manufacturing costs
merger noun · formal
An arrangement in which two organisations combine to form one.
The merger could help both firms reduce costs and reach a larger market.
Collocations: company merger · proposed merger · merger agreement
overheads plural noun · formal
The regular costs of running a business that are not directly linked to making products.
Working remotely can help companies reduce overheads such as office rent and utilities.
Collocations: reduce overheads · business overheads · high overheads
prosperity noun · formal
A state of being successful and having a high standard of living.
Economic prosperity is more meaningful when its benefits are shared across society.
Collocations: economic prosperity · shared prosperity · period of prosperity
purchasing power noun phrase · academic
The amount of goods and services that a person or group can afford to buy.
Rising prices can reduce the purchasing power of people on fixed incomes.
Collocations: increase purchasing power · purchasing power parity · loss of purchasing power
recession noun · academic
A period when economic activity declines and businesses often reduce jobs and spending.
During a recession, governments may increase spending to support households and businesses.
Collocations: economic recession · deep recession · recession hit
revenue noun · formal
The income received by a business or government from its activities.
Higher ticket sales could increase the museum's revenue and help fund new exhibitions.
Collocations: government revenue · generate revenue · tax revenue
scarcity noun · formal
A situation in which there is not enough of something to meet people's needs.
Water scarcity can limit agricultural production and increase pressure on local communities.
Collocations: resource scarcity · scarcity of resources · address scarcity
shareholder noun · formal
A person or organisation that owns shares in a company.
A responsible company should consider its employees as well as each shareholder's financial interests.
Collocations: major shareholder · shareholder rights · shareholder approval
start-up noun
A newly created business, especially one designed to grow quickly.
A technology start-up can expand rapidly if it secures sufficient funding and attracts skilled staff.
Collocations: start-up company · start-up costs · start-up funding
stock market noun phrase
A place or system where shares in companies are bought and sold.
Although the stock market can support investment, its short-term fluctuations may worry small investors.
Collocations: stock market crash · stock market performance · stock market investment
subsidy noun · formal
Money provided by a government or organisation to reduce costs or support an activity.
A subsidy for public transport could make commuting more affordable for low-income workers.
Collocations: government subsidy · energy subsidy · provide a subsidy
supply and demand noun phrase · academic
The relationship between the amount available and the amount people want to buy.
The price of a product often changes according to supply and demand.
Collocations: supply and demand forces · balance of supply and demand · supply and demand dynamics
surplus noun · academic
An amount left over after what is needed or used has been accounted for.
A budget surplus could allow the government to improve public transport without increasing borrowing.
Collocations: budget surplus · trade surplus · surplus labour
taxation noun · academic
The system or process by which governments collect money from people and businesses.
Fair taxation can provide funding for essential services and reduce economic inequality.
Collocations: progressive taxation · taxation system · levels of taxation
turnover noun · formal
The total value of a company's sales during a particular period.
The retailer increased its turnover by offering a wider range of affordable products.
Collocations: annual turnover · sales turnover · increase turnover
viable adjective · formal
Able to work successfully or be carried out in practice.
Improving public transport could be a viable alternative to expanding urban roads.
Collocations: viable option · financially viable · viable solution
wholesale adjective · formal
Relating to the sale of goods in large quantities, usually to businesses that sell them on.
Wholesale prices for fresh produce often rise after a poor harvest.
Collocations: wholesale price · wholesale market · wholesale business
Band 8+ words
acquisition noun · formal
The purchase of one company or business by another.
The acquisition gave the firm access to new technology and a broader customer base.
Collocations: business acquisition · hostile acquisition · acquisition deal
austerity noun · formal
A policy of reducing public spending, often to lower government debt.
Prolonged austerity may reduce public debt but can also weaken essential services.
Collocations: austerity measures · austerity programme · impose austerity
commodity noun · academic
A basic product that can be bought and sold, often in large quantities.
When a key commodity becomes scarce, its price can rise rapidly.
Collocations: raw commodity · commodity prices · commodity market
consumerism noun · academic
The belief that buying and owning more goods leads to a better life.
Consumerism encourages people to replace products they could otherwise continue using.
Collocations: rise of consumerism · promote consumerism · consumerism culture
economies of scale plural noun phrase · academic
Cost advantages that businesses gain by producing goods in larger quantities.
Large manufacturers can benefit from economies of scale by spreading costs across more products.
Collocations: achieve economies of scale · benefit from economies of scale · economies of scale
globalisation noun · academic
The growing connection between countries through trade, investment, technology and culture.
Globalisation has enabled businesses to reach new customers, although it has also increased competition.
Collocations: economic globalisation · globalisation of trade · effects of globalisation
gross domestic product noun phrase · academic
The total value of goods and services produced within a country during a set period.
Gross domestic product is a useful measure of economic activity, but it does not show how wealth is distributed.
Collocations: gross domestic product per capita · measure gross domestic product · gross domestic product growth
materialism noun · academic
The belief that money and possessions are more important than other aspects of life.
Some critics argue that materialism can weaken relationships by making status seem more important than personal connection.
Collocations: growing materialism · materialism in society · culture of materialism
monopoly noun · academic
A situation where one company controls nearly all supply of a particular product or service.
A monopoly can limit consumer choice and allow prices to remain unnecessarily high.
Collocations: state monopoly · monopoly power · monopoly over a market
outsourcing noun · formal
The practice of paying an outside company to do work previously done internally.
Outsourcing customer services may reduce costs, but it can also affect service quality.
Collocations: outsourcing jobs · outsourcing services · outsourcing costs
profit margin noun phrase · formal
The percentage of a company's revenue that remains as profit.
Rising production costs can reduce a business's profit margin even when its sales increase.
Collocations: profit margin growth · profit margin analysis · increase profit margin
tariff noun · academic
A tax placed on goods brought into a country from elsewhere.
A tariff on imported materials can raise production costs for local businesses.
Collocations: import tariff · tariff rate · impose a tariff
trade barrier noun phrase · formal
A rule or tax that makes international trade more difficult or expensive.
A trade barrier may protect local industries, but it can also raise prices for consumers.
Collocations: remove a trade barrier · trade barrier reduction · impose a trade barrier
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