Lesson Plan

• Describe how economic growth influences the current‑account component of the balance of payments.
• Analyse the impact of export competitiveness, import demand and exchange‑rate changes on the BoP.
• Evaluate how BoP surpluses or deficits affect investment and overall economic growth.
• Apply the growth‑BoP linkage to construct a balanced exam answer using the summary table and diagram.

• Projector and screen
• Whiteboard and markers
• Handout with summary table and key formulas
• Calculator
• Worksheets with case‑study questions

Start with a quick poll: which macroeconomic objective is most linked to the balance of payments? Review the identity Y = C + I + G + (X‑M) and set the success criteria – students will explain two‑way links between growth and the BoP.

1. Do‑now (5'): matching activity linking macro objectives to BoP components.
2. Mini‑lecture (10'): present growth‑BoP channels (export competitiveness, import demand, capital flows, exchange‑rate effects) with diagram.
3. Guided analysis (12'): pairs use the summary table to discuss how higher growth can improve or worsen the current account.
4. Case study (10'): examine a real‑world emerging economy and identify the dominant channel.
5. Synthesis (8'): students draft a brief answer outline covering the four channels and feedback loops.
6. Check for understanding (5'): quick quiz (exit ticket) with two short questions.

Recap the two‑way relationship and highlight the key take‑aways. Collect exit tickets as a retrieval check. Homework: write a 200‑word answer applying the growth‑BoP links to a country of your choice.