The latest Global Economic Conditions Survey (GECS) by the Association of Chartered Certified Accountants (ACCA) and the Institute of Management Accountants (IMA) indicates a modest global rebound in business confidence for Q2 2025. However, the Asia Pacific region has experienced a significant decline, erasing gains from the previous quarter. This downturn is attributed to rising US tariffs, global trade uncertainty, and increasing customer risk.
Geopolitical issues have emerged as the primary concern for accountants globally, surpassing economic and regulatory worries. Whilst talent and cybersecurity risks remain significant, they have become less prominent compared to the growing focus on external volatility and policy unpredictability. Climate, fraud, and supply chain issues have also seen a decline in priority.
Key findings for the Asia Pacific region include a sharp fall in the Employment Index, which remains historically weak. Concerns about customer insolvency have spiked, marking the highest level among all regions. Although cost pressures have risen slightly, they remain modest by historical standards, whilst payment delays have increased.
In Singapore, businesses face heightened caution due to rising compliance and wage pressures amidst persistent global trade uncertainty. The sharp decline in confidence across Asia Pacific, coupled with concerns about customer solvency and payment delays, suggests that finance professionals in the region are likely to encounter more challenging decision-making environments.
As the global economic landscape continues to evolve, the focus on geopolitical risks and external volatility may shape future business strategies and decision-making processes.
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