Global economic confidence fell for the third consecutive quarter in Q4 2018, ending the year at an all-time low according to a quarterly survey of global economic conditions (GECS) from ACCA and the Institute of Management Accountants (IMA)
The global poll of 3,800 accountants shows that all key regions recorded a negative confidence score with signs of growth weakening in the world’s three biggest economies - the US, China and the Eurozone.
The survey reveals respondents to be pessimistic about the outlook ahead, with the lowest scores recorded in Western Europe and the Caribbean. The least pessimistic part of the global economy was again South Asia, followed by Africa and North America.
The results indicate the biggest concern for respondents was once again rising costs, with 55% citing this as an issue. In addition, 47% of respondents globally are considering laying off staff, with just 18% considering taking on new workers, while 39% are considering scaling back investment in new capital projects, compared with 16% who are looking to increase investment in new projects.
Narayanan Vaidyanathan, head of business insights at ACCA said: ‘Economic confidence over 2018 has been turbulent, with end of calendar year results downbeat compared to the start of 2018.
‘It’s been interesting to look back at the GECS from the start of 2018, when we recorded economic confidence at its highest since the first survey was issued assessing Q1 2009. Last year was clearly a roller-coaster ride and the outlook for 2019 is also uncertain.’
GECS Q4 2018 is here.
Report by Pat Sweet
