Confidence among accountants and finance professionals has fallen sharply, reaching its lowest levels since the second quarter of 2020. The latest ACCA (Association of Chartered Certified Accountants) and IMA® (Institute of Management Accountants) Global Economic Conditions Survey (GECS) of over 1,800 finance professionals revealed heightened pessimism in Q4 2024, fueled by a highly uncertain economic and political landscape for 2025.
The survey recorded a significant decline in the Global Confidence Index and the Employment Index. However, there were modest gains in forward-looking metrics like the New Orders Index and the Capital Expenditure Index.
In Western Europe, confidence plummeted to its lowest since Q3 2022, with the UK experiencing a record drop following the announcement of steep employer tax hikes in the Chancellor’s recent statement. In Asia-Pacific, ongoing concerns about China’s economic outlook and the potential rise in U.S. tariffs weighed on sentiment. Meanwhile, North America showed a mixed picture—confidence in Canada fell sharply, while sentiment in the U.S. improved for the second consecutive quarter, driven by the resilience of its economy.
Cost pressures have eased in most regions, except Western Europe, where three-quarters of respondents reported rising costs in Q4. Economists warn that central banks in the region must remain cautious in their fight against inflation to avoid premature declarations of victory. Jonathan Ashworth, Chief Economist at ACCA, noted: “The global economy proved quite resilient in 2024, aided by the strength of the U.S. economy.
The gains in New Orders and Capital Expenditure indices suggest the global economy isn’t on the brink of a major downturn, the sharp decline in the Global Confidence Index reflects the nervousness among businesses as they face significant uncertainty, creating substantial downside risks for growth in 2025.” Alain Mulder, Senior Director Europe Operations & Global Special Projects at IMA, added: “Confidence in the U.S. has improved and is now slightly above its historical average. This resilience is a positive sign as the U.S. remains the only major driver of global economic activity showing sustained strength.”
