Accountants regain confidence in global economy, ACCA finds

Accountants and finance professionals are more confident in the global economy than they have been since early 2023, according to the latest ACCA and IMA Global Economic Conditions Survey (GECS). 

While the survey found that a “moderate” increase in confidence put the index just above its historic average, there was a small decline in the Capital Expenditure Index, which remains below average. 

Encouragingly, there were gains in confidence in most regions. The moderate rise in confidence in Western Europe also suggests that growth may be gradually improving from the weakness of recent quarters.      

However, global concerns about increased operating costs rose, although they remain below their Q3 2022 peak.

GESC responses from Q1 2024 reportedly demonstrated how “the ripple effects of economic uncertainty have been exacerbated by rising geopolitical and talent scarcity challenges”.

According to respondents across all sectors and regions, they are feeling the impact of talent retention risks, with numerous respondents describing the skills shortage as an epidemic. 

Cybersecurity is also viewed as a significant threat, especially with advancements in generative AI, making ransomware and other cybercrimes increasingly easier and quicker to carry out. 

Jonathan Ashworth, chief economist at ACCA, said: “The survey points to some improvement in global growth. Nevertheless, while encouraging, it is no time to celebrate just yet, with the global economy facing many risks and challenges and still set for below average growth in 2024. 

“Moreover, the elevated level of concerns about costs suggests that the major central banks should proceed very cautiously with any monetary easing.”