Why is the gospel referred to as the word of grace?

The term 'word of grace' reflects the nature of the gospel as it is a declaration of God's favor and mercy towards sinners. The Apostle Paul, in Acts 20:32, refers to this gospel as the means through which believers are built up in their faith and assured of their eternal inheritance. This grace is sovereign, free, and not based upon human works, as elaborated in Ephesians 2:9, emphasizing that salvation is a gift from God. It reassures those who feel unworthy, demonstrating that the gospel is specifically for sinners and showcases the depth of God's love and redemption.