Global economic confidence rebounds to highest level since 2009 despite trade war risks

Date

20 Apr 2018

Sections

Euro & Finance

Press release

The latest Global Economic Conditions Survey (GECS) from ACCA (the Association of Chartered Certified Accountants) and IMA® (Institute of Management Accountants) released today found that global economic confidence is at its highest level in years, with strong growth since the start of 2017.

Economic confidence is at its highest since the first GECS survey was issued assessing Q1 2009. GECS is the largest regular economic survey of accountants around the world, in terms of both the number of respondents and the range of economic variables it monitors.

The new survey found that confidence in North America rebounded strongly in the first quarter of 2018, with 38% feeling more confident about the future, compared with just 26% who were less confident. While confidence in China fell again for a second successive quarter, it is still at the fourth highest level since 2009.

‘The outlook for the global economy is as good as it has been for some time,’ said Narayanan Vaidyanathan, Head of Business Insights at ACCA. ‘The continued rising confidence, led by North America, is also benefitting other key trading economies such as Africa and South Asia. Despite the political uncertainties caused by Brexit, confidence in the UK and Western Europe also remains strong.’

You can read the full report (here) or at http://www.accaglobal.com/uk/en/professional-insights/global-economics/Global-economic-conditions-survey-Q1-2018.html

Raef Lawson, Ph.D., CMA, CPA, IMA vice president of research and policy, cautioned that the biggest risk to the overall outlook is the possibility of a trade war between the United States and China, given proposed measures including tariffs, which could escalate tension and impact other regions globally. If this does not occur, the global economy likely would see another year of strong growth.

‘Since the start of the year, policymaking in the U.S. has taken a more protectionist turn, causing concern about a possible trade war with China,’ Lawson said, noting China’s recent announcement of counter-tariffs. ‘It is possible that this response by China could escalate the crisis as the U.S. government is no longer willing to abide large imbalances in trade cause by unfair trade policies.’

Fieldwork for the Q1 2018 GECS took place between 27 February and 15 March 2018 and attracted 1,418 responses from ACCA and IMA members around the world, including more than 100 CFOs.

 

- ends -

 

For media enquiries, contact:

David Bowden

E: david.bowden@accaglobal.com

T: +44 (0)20 7059 5019

M: + 44 (0)7540919819

Twitter @ACCANews

 

About ACCA

ACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants, offering business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management.

ACCA supports its 200,000 members and 486,000 students in 180 countries, helping them to develop successful careers in accounting and business, with the skills required by employers. ACCA works through a network of 101 offices and centres and more than 7,200 Approved Employers worldwide, who provide high standards of employee learning and development. Through its public interest remit, ACCA promotes appropriate regulation of accounting and conducts relevant research to ensure accountancy continues to grow in reputation and influence.

ACCA is currently introducing major innovations to its flagship qualification to ensure its members and future members continue to be the most valued, up to date and sought-after accountancy professionals globally.

Founded in 1904, ACCA has consistently held unique core values: opportunity, diversity, innovation, integrity and accountability. More information is here: www.accaglobal.com

 

About IMA® (Institute of Management Accountants)
IMA®, named 2017 Professional Body of the Year by The Accountant/International Accounting Bulletin, is one of the largest and most respected associations focused exclusively on advancing the management accounting profession. Globally, IMA supports the profession through research, the CMA® (Certified Management Accountant) program, continuing education, networking and advocacy of the highest ethical business practices. IMA has a global network of more than 100,000 members in 140 countries and 300 professional and student chapters Headquartered in Montvale, N.J., USA, IMA provides localized services through its four global regions: The Americas, Asia/Pacific, Europe, and Middle East/India. For more information about IMA, please visit www.imanet.org.