Global accountants’ confidence dipped further at the start of 2025, but the decline was notably milder compared with the sharp drop recorded in the final quarter of 2024, the Q1 2025 Global Economic Conditions Survey (GECS) has found. 

The survey, conducted by the Association of Chartered Certified Accountants (ACCA) and the Institute of Management Accountants (IMA), indicates that confidence is at its lowest since Q2 2020. 

Conducted between late February and mid-March 2025, the survey was completed just before the US announced significant import tariffs, which increased downside risks to the global economy.  

Confidence in North America fell sharply, with US-based accountants experiencing their second-lowest confidence levels ever.  

Survey respondents highlighted US trade policy and government spending cuts as key factors affecting sentiment. 

Expectations for government spending increases have dropped significantly in recent quarters. Additionally, the US Capital Expenditure and Employment indices both declined, reaching historically low levels.  

However, the US New Orders Index showed improvement, nearing its average. 

ACCA chief economist Jonathan Ashworth 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.” 

IMA senior director of Europe operations and global special projects, Alain Mulder said: “New US 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 US economy were likely factors too.” 

Confidence rose in Asia Pacific and Western Europe, following previous declines, despite the risks posed by US import tariffs.  

Globally, cost pressures increased, remaining high in Western Europe and rising significantly in North America. 

Economy-related concerns were the top risk identified by accountants in Q1, with varying responses across sectors.  

Cybersecurity was the highest concern for financial services and tied with talent scarcity in the public and not-for-profit sectors.  

The corporate sector ranked economic issues first, with geopolitical instability closely following.  

Geopolitical risks were noted as the second-highest concern overall, a first for the survey, with US respondents particularly noting the implications of new policy changes and tariffs.