Confidence among global accountants has plunged to its lowest point since Q2/2020, as revealed in the Q4/2024 Association of Chartered Certified Accountants (ACCA) and Institute of Management Accountants (IMA) Global Economic Conditions Survey.

The survey, which included insights from over 1,800 finance professionals, reflects growing apprehension about an uncertain year ahead, marked by a new US administration, heightened geopolitical tensions, and pressing domestic challenges across many regions.

Confidence among accountants and finance professionals falls sharply. Photo: ACCA

Despite some positive developments, such as small gains in the forward-looking New Orders Index and Capital Expenditure Index, the overall Global Confidence Index saw a sharp decline, accompanied by a deterioration in the Employment Index. Confidence levels fell most notably in Western Europe, where they reached their lowest since Q3/2022. In the United Kingdom, confidence plummeted to an all-time low following the announcement of substantial tax increases for employers in the Chancellor’s recent statement.

Asia-Pacific and North America also experienced declines in confidence, albeit for different reasons. In Asia-Pacific, ongoing concerns over the Chinese economy and the potential for increased US tariffs weighed heavily on sentiment.

Meanwhile, in North America, confidence among Canadian respondents dropped sharply, offsetting a second consecutive quarter of rising confidence in the United States. This increase in US confidence reflects the ongoing resilience of the world’s largest economy, which continues to act as a stabilising force amid global uncertainty.

Encouragingly, global cost pressures appear to have eased and are no longer elevated by historical standards in most regions, with Western Europe being the clear exception. Nearly three-quarters of respondents in Western Europe reported increased costs in Q4. As central banks in the region navigate the inflation battle, they are urged to avoid prematurely declaring victory, ensuring long-term economic stability.

Jonathan Ashworth, chief economist at ACCA, emphasised the mixed outlook.

“The global economy proved quite resilient in 2024, aided by the strength of the US economy. The greater resilience of the Global New Orders and Capital Expenditure indices suggests that the global economy is not on the brink of a sharp downturn. However, the sharp decline in the Global Confidence Index reflects significant nervousness among companies due to the extraordinary ongoing uncertainty under such conditions, global growth faces substantial downside risks in the coming year,” said Ashworth.

Alain Mulder, senior director for Europe operations and global special projects at IMA said, “Confidence in the US registered another reasonable gain and now sits slightly above its historical average. This is an encouraging sign, as the US remains the only major engine of the global economy showing significant resilience at present. Improvements in other key indicators further reinforce this optimism.”

The survey also shed light on the top risk priorities identified by accountants at the close of 2024. Economic risks remained the highest concern for the second consecutive year. However, talent scarcity, regulatory change, and cybersecurity climbed much closer to the top compared to Q4/2023. The priorities varied by region, with cybersecurity ranking highest in Central and Eastern Europe, talent scarcity dominating concerns in Asia-Pacific and Western Europe, and geopolitical risks maintaining a top-three position in South Asia and North America.

With regional and sector-specific nuances shaping risk priorities, these insights underscore the importance of adaptive strategies to address the evolving global environment in 2025.