Syllabus: Pearson - Pearson - A Level Economics
Module: 2.1 Measures of Economic Performance
Lesson: 2.1.1 Economic Growth

Introduction

This article supports the delivery of Pearson Edexcel A Level Economics A, specifically Theme 2: The UK Economy – Performance and Policies, focusing on 2.1.1 Economic Growth. It’s designed to help teachers deliver syllabus-aligned lessons that feel relevant and engaging while also preparing students for assessment.

Economic growth underpins so many aspects of the curriculum because it links theory to lived experience. Whether you’re introducing GDP or unpacking government policy, this topic creates space for students to connect classroom learning to national headlines and their own futures.

Key Concepts

From the Pearson specification, students need to understand:

• The definition of economic growth: measured as the percentage change in real GDP.

• The distinction between actual and potential growth.

• How growth is measured, primarily through real GDP figures.

• Causes of economic growth, such as increased investment, technological advancements, higher productivity, improved labour supply and increased aggregate demand.

• Short-run vs long-run growth: the difference between demand-side and supply-side factors.

• Benefits of growth, including improved living standards, higher employment, and increased government revenue.

• Costs of growth, such as environmental degradation, income inequality, and inflationary pressure.

• The limitations of using GDP as a measure of living standards (e.g. ignores inequality, unpaid work, or environmental impacts).

All of this content connects directly to the quantitative and analytical skills students need across the course, especially in Paper 2 and Paper 3 assessments.

Real-World Relevance

There’s no shortage of real examples to bring this to life. Recent UK GDP data from the ONS shows sluggish growth in early 2025, with some sectors still struggling post-pandemic while others bounce back with AI-driven productivity gains.

You can also draw comparisons globally:

• India continues to show strong growth, driven by a burgeoning tech sector and infrastructure investment.

• Germany recently flirted with recession due to energy prices and reduced exports.

These examples allow students to debate the quality of growth, not just the numbers.

A short case study idea: Present GDP growth and Gini coefficient data for two countries. Ask students to evaluate which country is performing “better” economically – and why that’s not a simple question.

How It’s Assessed

This topic appears across multiple assessment types:

• Short-answer questions asking for definitions or data interpretation.

• Data response questions using graphs or economic indicators.

• Longer evaluative questions (10 or 12 marks) where students must weigh up the benefits and costs of growth, often in the context of a policy or a current event.

Typical command words include:

• Define

• Explain

• Analyse

• Evaluate

Encourage students to structure extended responses using chains of reasoning and always link back to the question. Assessment success here relies on clarity of thought, confident use of data, and well-balanced arguments.

Enterprise Skills Integration

Economic growth is a natural bridge to enterprise thinking. Lessons can include activities where students:

• Explore innovation as a driver of growth, connecting to entrepreneurship and technological change.

• Debate policy decisions, using critical thinking and problem-solving to propose strategies for sustainable growth.

• Apply cost-benefit analysis to assess growth-related decisions from a business or government perspective.

Use real data and scenarios to help students step into the shoes of a policymaker or business leader making tough decisions about investment, taxation or infrastructure.

Careers Links

This topic links to Gatsby Benchmark 4 (Careers in the curriculum) and Benchmark 5 (Encounters with employers) through roles in:

• Government policy and civil service

• Data analysis and economic consultancy

• Banking and finance

• Sustainability and environmental economics

You could invite a guest speaker (e.g. local councillor or economist) or set up a “Policy Pitch” task where students present economic strategies to support local growth. Careers leads can use this topic to show how economics feeds into both public and private sector roles.

Teaching Notes

Here’s what experienced teachers often highlight:

What works:

• Starting with GDP figures in the news to ground the concept.

• Layering diagrams, e.g. using AD/AS to show short-run growth, and then PPFs to show potential growth.

• Embedding numeracy with regular practice calculating percentage changes or interpreting economic data.

Common pitfalls:

• Students confusing nominal and real GDP – use inflation-adjusted examples early and often.

• Assuming growth is always positive – make time for critical discussion about environmental and social trade-offs.

Stretch and challenge:

• Ask students to evaluate whether GDP is still a useful measure in a modern, service-based, digital economy.

• Introduce alternative measures like the Human Development Index (HDI) or Genuine Progress Indicator (GPI) for broader thinking.