The latest Global Economic Conditions Survey (GECS) by the Association of Chartered Certified Accountants (ACCA) and Institute of Management Accountants (IMA) shows improving global confidence in Q2 2025, with the index reaching its highest level since Q3 2024. That said, confidence among accountants is still at a low level by historical standards.

Highlights and the full report are available at https://www.imanet.org/about-ima/gecs.

For the first time, geopolitics topped accountants’ global risk priorities in Q2. Economic fears are tied to 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.

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 US trade policy, was likely the key factor weighing on sentiment.

“Global growth has generally proved quite resilient in the first half of 2025, despite the large increases in US tariffs and massive rise in uncertainty,” said Jonathan Ashworth, chief economist, ACCA. “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 US inflation higher over the coming months, and as uncertainty and tariffs weigh on the US and global economies, some slowing in global growth looks likely over the second half of 2025.”

The global New Orders and Capital Expenditure indices both declined modestly, although the former is at its historical average and the latter not much below. 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.

Alain Mulder, senior director, Europe Operations & Global Special Projects at IMA, said, “According to accountants, global cost pressures eased, 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. This raises the risk that firms may attempt to raise prices over the 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.”

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.

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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, NJ, USA, IMA provides localised 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 Q2 survey took place between June 3-June 25, 2025, gathering 420 responses.

Geopolitics tops accountants’ global risk priorities for the first time as indicated by the results of the ACCA & IMA quarterly Global Economic Conditions Survey (GECS)