New York: Confidence among global accountants has continued to decline into early 2025, according to the latest Global Economic Conditions Survey (GECS) conducted by the Association of Chartered Certified Accountants (ACCA) and the Institute of Management Accountants (IMA). Despite a slight improvement from the stark drop observed in late 2024, the confidence levels are the lowest since the second quarter of 2020.

The survey, which took place between late February and mid-March, highlights a significant drop in accountant confidence in North America, particularly within the United States. Survey respondents pointed to U.S. trade policy and government spending cuts as primary factors impacting sentiment. Confidence among U.S.-based accountants is near record lows, with both the Capital Expenditure and Employment indices reflecting historical declines. However, there was a slight uptick in the New Orders Index, suggesting some resilience.

In contrast, regions such as Asia Pacific and Western Europe saw improvements in confidence after experiencing declines in previous quarters, despite concerns over U.S. import tariffs. Globally, cost pressures have escalated, particularly in Western Europe and North America.

Jonathan Ashworth, ACCA’s Chief Economist, expressed concerns about the potential for a negative cycle in the global economy if confidence remains low. He emphasized that intensified global trade tensions since the survey’s completion have further increased economic risks.

Alain Mulder, Senior Director at IMA, noted that new U.S. trade and government spending policies have significantly impacted confidence, compounded by global market declines and signs of a slowing U.S. economy.

Economic conditions remain the top concern for accountants globally, with cybersecurity and talent scarcity emerging as key issues in specific sectors. Geopolitical risks have also gained prominence, particularly in the U.S., where recent policy changes and tariffs have heightened uncertainty.