Money and banking / B2

eek-uh-NOM-ik/ˌiːkəˈnɒmɪk/

Economic means connected with trade, industry, and a country’s money: economic growth, economic policy. Economical is the spelling trap — that one means cheap to run or not wasteful (an economical car). Financial often means a person or firm’s money; economic is the bigger picture. Economy is the noun; in speech people say the economy or money matters.

Meaning

Connected with trade, industry, and the money of a country.

Examples

• “The economic situation is improving.”
• “The government announced a new economic plan.”
• “Low interest rates had a clear economic effect on housing.”

Good to know

economic = the economy. economical = not wasteful. Do not mix them.

Topics

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