#USA #Montvale #ACCA #IMA #GECS

Global Economic Confidence Among Accountants: An Overview

The recent Global Economic Conditions Survey (GECS), conducted by the Association of Chartered Certified Accountants (ACCA) and the Institute of Management Accountants (IMA), reveals a slight upturn in global economic confidence in the second quarter of 2025. This report, released on July 22, indicates that while the confidence index has peaked since Q3 of 2024, it still lags behind historical averages, suggesting a fragile recovery.

Geopolitics at the Forefront of Concerns

For the first time, geopolitical risks have become the primary concern for accountants globally, overshadowing prior worries such as economic fears stemming from regulatory and compliance issues, which have now taken the second spot. This shift illustrates a growing recognition of the impact that global tensions and trade policies have on economic stability. Challenges like talent scarcity and cybersecurity are still significant but have appeared slightly less critical this quarter.

Regional Perspectives on Economic Confidence

The report indicates a contrasting landscape across different regions:

• - In North America, there has been a notable increase in confidence, particularly among U.S.-based accountants. However, this sentiment is still considered low by historical measures.
• - Western Europe has experienced a moderate gain, supported by improvements in the UK, recovering from a record low in late 2024.
• - Conversely, Asia Pacific saw a sharp decline in confidence, a reflection of the deteriorating backdrop for global trade, especially in light of shifts in U.S. trade policy.

Insights on Economic Indicators

Despite a generally resilient global growth performance in the first half of 2025, forecasters remain cautious. Jonathan Ashworth, Chief Economist at ACCA, states that while key indicators from the GECS do not suggest an imminent downturn, they reflect low confidence levels that may lead to slowing global growth in the latter part of the year. The New Orders and Capital Expenditure indices experienced modest declines; however, both still hover around their historical averages, suggesting some stability in the market.

Employment Trends and Cost Pressures

Interestingly, the Employment Index showed improvement, almost aligning with historical norms. Nevertheless, the report highlighted ongoing global cost pressures, which vary by region. For instance, the number of North American accountants reporting increased operating costs has decreased, yet remains high when viewed historically. This may lead firms to consider raising prices in response to ongoing inflationary trends, complicating the Federal Reserve's monetary policies if economic growth continues to weaken.

Conclusion: A Mixed Bag of Optimism and Caution

In summary, while the latest GECS findings suggest a cautious optimism regarding global economic confidence among accountants, the overarching themes of geopolitical uncertainty and regulatory pressures remain significant to watch. The mixed signals from various regions and economic indicators underline the importance of vigilance among financial professionals as they navigate this complex landscape.

About ACCA
Established in 1904, ACCA is a globally respected professional accountancy body dedicated to enhancing and maintaining standards in accountancy worldwide. With over 252,500 members across 180 countries, ACCA champions inclusion and the advancement of the profession to promote a sustainable economic future. More information can be found at www.accaglobal.com.

About IMA®
The IMA is one of the largest associations focused exclusively on the management accounting profession, offering certifications, education, and a platform for advocacy. With approximately 140,000 members globally, IMA continues to set industry standards while promoting ethical business practices. Visit www.imanet.org for further details.