Confidence among global accountants declined again in early 2025, although the fall was much less marked than in Q4 2024, according to the Q1 2025 Global Economic Conditions Survey (GECS).

The survey from ACCA (the Association of Chartered Certified Accountants) and IMA® (Institute of Management Accountants) suggests that confidence remains at its lowest since Q2 2020. The survey of accountants took place between late February and mid-March and so it was completed in the build-up to last week’s major announcement by the U.S. on import tariffs which significantly increased the downside risks to the global economy. 

Confidence fell markedly in North America amid a huge fall in the U.S. Confidence among U.S.-based accountants is at its second lowest ever, with commentary from survey respondents suggesting that U.S. trade policy has been the key factor weighing on sentiment, as well as cuts in government spending. Expectations for increases in the latter have fallen sharply in recent quarters. Moreover, the U.S. Capital Expenditure and Employment indices both declined and are at very low levels historically. More encouragingly, the U.S. New Orders Index rose again and is not too far below its average. 

Elsewhere, there were decent gains in confidence in Asia Pacific and Western Europe, after sharp falls in previous quarters, despite the growing risk from U.S. import tariffs. Meanwhile, cost pressures increased globally. They remain very elevated in Western Europe and rose quite materially in North America. 

Jonathan Ashworth, Chief Economist, ACCA, said: ‘Global growth has generally proved quite resilient over recent quarters. Nonetheless, the longer that confidence remains depressed, the greater the risk that a self-reinforcing negative cycle could potentially develop, with firms pulling back on orders, capital expenditure and hiring. Unfortunately, with global trade tensions stepping up markedly since the survey was completed, the downside risks to the global economy have increased significantly.’

Alain Mulder, Senior Director, Europe Operations & Global Special Projects at IMA said: ‘New U.S. policies on trade and government spending, and the uncertainty surrounding them, appear to have had a large negative impact on confidence, while declines in the global markets and signs of slowing in the U.S. economy were likely factors too.’

The economy remained the highest overall risk identified by accountants in Q1, but responses varied across sectors. Cybersecurity was the highest for financial services and tied in first with talent scarcity for the public and not-for-profit sector. The corporate sector ranked economic woes first and geopolitical instability a tight second. Geopolitical risks came in second overall – the first time it was above third – with respondents in the U.S. especially, commenting on the implications of new policy changes and tariffs. 

Read the full survey here 

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About ACCA

We are ACCA (the Association of Chartered Certified Accountants), a globally recognised professional accountancy body providing qualifications and advancing standards in accountancy worldwide.
Founded in 1904 to widen access to the accountancy profession, we’ve long championed inclusion and today proudly support a diverse community of over 252,500 members and 526,000 future members in 180 countries. 
Our forward-looking qualifications, continuous learning and insights are respected and valued by employers in every sector. They equip individuals with the business and finance expertise and ethical judgment to create, protect, and report the sustainable value delivered by organisations and economies. 
Guided by our purpose and values, our ambition is to lead the accountancy profession for a changed world. Partnering with policymakers, standard setters, the donor community, educators and other accountancy bodies, we’re strengthening and building a profession that drives a sustainable future for all. 

Find out more at: www.accaglobal.com

About IMA® (Institute of Management Accountants) 

IMA® 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), CSCA® (Certified in Strategy and Competitive Analysis), and FMAA™ (Financial and Managerial Accounting Associate) certification programs, continuing education, networking, and advocacy of the highest ethical business practices. Twice named Professional Body of the Year by The Accountant/International Accounting Bulletin, IMA has a global network of about 140,000 members in 150 countries and 200+ professional and student chapters. Headquartered in Montvale, N.J., USA, IMA provides localized services through its six global regions: The Americas, China, Europe, Middle East/North Africa, India, and Asia Pacific. For more information about IMA, please visit www.imanet.org. 

About GECS 

The Global Economic Conditions Survey (GECS), carried out jointly by ACCA and IMA, is the largest regular economic survey of accountants around the world, in both the number of respondents and the range of economic variables it monitors. The GECS has been conducted every quarter since 2011. Its main indices are good lead indicators of economic activity and provide a valuable insight into the views of finance professionals on key variables, such as investment, employment and costs.  

Fieldwork for the 2025 Q1 survey took place between 25th Feb – 13th March 2025, gathering 516 responses.