KARACHI: Confidence among global accountants declined again in early 2025, although the fall was much less marked than in Q4 2024, according to the Q1 2025 Global Economic Conditions Survey (GECS). Meanwhile, cost pressures increased globally.
The survey from ACCA (the Association of Chartered Certified Accountants) and IMA (Institute of Management Accountants) suggested that confidence remains at its lowest since Q2 2020. The survey evaluated the impact of the US import tariffs announcement and the US trade policy being the key factor weighing on sentiment, as well as cuts in government spending, which significantly increased the downside risks to the global economy.
Confidence fell markedly in North America as the Confidence among US-based accountants is at its second lowest ever. Moreover, the US Capital Expenditure and Employment indices both declined. More encouragingly, the US New Orders Index rose again and is not too far below its average.
Jonathan Ashworth, Chief Economist, ACCA, said: “Global growth has generally proved quite resilient over recent quarters. Nonetheless, the longer that confidence remains depressed, the greater the risk that a self-reinforcing negative cycle could potentially develop, with firms pulling back on orders, capital expenditure and hiring.”
Alain Mulder, Senior Director at IMA Europe said: “New US policies on trade and government spending, and the uncertainty, appear to have had a large negative impact, as the confidence grew in Western Europe, after sharp falls in previous quarters.”
Confidence rose strongly in Asia Pacific in Q1. There was also a solid gain in the New Orders Index, by historical standards. But the Capital Expenditure and Employment indices provide a contrasting picture. Mainland-China-based accountants sound confident, as they have seen large improvements in the New Orders Index since Q3 2024.
Copyright Business Recorder, 2025
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