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The ACCA and IMA Global Economic Conditions Survey (GECS) showed improving global confidence in Q2 2025, with the index reaching its highest since Q3 2024. That said, confidence among accountants is still at a low level by historical standards.
The New Orders and Capital Expenditure indices both declined modestly, although the former is at its historical average and the latter not much below, and both are at levels broadly similar to other readings since the aftermath of Russia’s invasion of Ukraine. Meanwhile, the Employment Index improved and is not that far below its historical average.
Of the major regions, confidence in North America rose in Q2, amid some improvement in sentiment among U.S.-based accountants, but it remains depressed by historical standards. Western Europe saw another moderate gain in confidence aided by a further improvement in the UK from its record low in Q4 2024. By contrast, confidence fell sharply in Asia Pacific, erasing the gains made in Q1 2025. The deterioration in the backdrop for global trade, amid major changes in U.S. trade policy, was likely the key factor weighing on sentiment.
Jonathan Ashworth, Chief Economist, ACCA, said: ‘Global growth has generally proved quite resilient in the first half of 2025, despite the large increases in U.S. tariffs and massive rise in uncertainty. While the key GECS indicators are certainly not pointing to a global economy in rude health, with confidence in particular remaining low, neither are they suggesting that a major downswing is imminent.’
‘Nevertheless, with higher tariffs likely to push U.S. inflation higher over coming months, and as uncertainty and tariffs weigh on the U.S. and global economies, some slowing in global growth looks likely over the second half of 2025.’
Alain Mulder, Senior Director, Europe Operations & Global Special Projects at IMA said: ‘Global cost pressures eased according to accountants, although there are divergent regional pressures. The proportion of North American respondents reporting increased operating costs eased slightly, although it remains on the high side historically after the large increase in Q1, raising the risk that firms may attempt to raise prices over coming months.’
‘Rising inflation would complicate the task of the Federal Reserve, if slowing growth and an easing jobs market begins to increase the need for a loosening in monetary policy.’
For the first time, geopolitics topped accountants' global risk priorities in Q2. Economic fears tied with regulatory and compliance risks as the second highest risk priority. Talent scarcity and cybersecurity remain critical but were slightly less prominent this quarter. Climate change, fraud, and supply chain risks remained lower down the agenda for respondents, suggesting a renewed focus on macro-external volatility, with boards and executives reacting to intensifying global conflicts, regulatory unpredictability and economic pressure.
Read the full report here.
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