- Confidence in Asia Pacific is now meaningfully above average after a sharp Q2 recovery, but it remains weak in North America and Western Europe.
- Economic pressures returned as the top risk priority among accountants in Q2 (22%), ahead of geopolitical instability (20%) and cybersecurity (14%).
Seven in 10 (72%) respondents expect inflation in their country to increase over the next three months.
Confidence among Asia-Pacific accountants and finance professionals rebounded sharply in Q226, according to the latest ACCA and IMA Global Economic Conditions Survey (GECS), reversing a Q1 decline and pushing the region's confidence and New Orders indices above their historical averages. This is a stronger recovery than seen in North America and Western Europe, where confidence remains weak by historical standards.
The fallout from the Middle East conflict continues to impact the results the survey, which was conducted between 3 and 17 June, before the renewed fighting and resumption of the US naval blockade.
While the region is very exposed to developments in the Middle East, hopes of a potential resolution of the conflict and the relative resilience of the global economy have likely been factors boosting sentiment, as well as the global AI boom, of which the region’s exporters are major beneficiaries.
Over three-quarters of accountants globally reported increased operating costs in Q2 – above the previous record set in the aftermath of Russia’s invasion of Ukraine – amid soaring commodity prices and supply chain disruptions resulting from the conflict. Over eight in 10 (83%) CFOs globally experienced increased costs, following a record-breaking rise of over 20 percentage points from Q1. This is close to series peaks recorded in 2022 and 2023.
Cost pressures also rose in the Asia-Pacific region, with the proportion of respondents reporting increased costs jumping nine percentage points to 66% in Q2, well above the survey's historical average. However, this remains notably less severe than in Western Europe (83%) and North America (74%), where cost pressures are close to record highs.
Despite soaring costs, there was some recovery in confidence among accountants globally in Q2, from what was close to a record low in Q1. While they remain quite downbeat by historical standards, the improvement likely reflects the relative resilience of the global economy and signs at the time of the survey of movement towards a potential resolution of the conflict, which may have reduced fears of worst-case scenarios.
That said, globally declines in the Global New Orders, Capital Expenditure and Employment indices point to some slowing in global growth, likely reflecting headwinds from increased private sector caution, rising inflation, and tighter-than-expected monetary policy, although they do not appear to be signalling a major economic slowdown.
Economic pressures returned as accountants' top risk priority in Q226 (22%), ahead of geopolitical instability (20%) and cybersecurity (14%). Respondents described how understanding today's risk landscape extends beyond traditional economic cycle management, pointing to the converging effects of prolonged wars, rising cybercrime and policy uncertainty. AI featured prominently, with comments focusing on sustainable value, cyber resilience and accountability.
Survey respondents in Singapore echoed these concerns. A Singapore CFO in professional services said: "The inability of economic analysts to forecast the future, and the reaction time of the government when dealing with unforeseen economic shocks are underestimated economic risks."
Another Singapore respondent added: "Increasing operating costs will result in many small businesses going out of business and demand for professional services will accordingly continue to decline."
Alain Mulder, Senior Director, Europe Operations & Global Special Projects at IMA said: "The AI boom is providing major support to the global economy and financial markets, but developments in the Middle East over coming months will be crucial. If progress can be made in resolving the conflict, that would clearly be supportive for global growth as we progress through the second half of 2026. But downside risks would quickly build if there were a return to major hostilities and surge in energy prices."
Jonathan Ashworth, Chief Economist, ACCA said: "Sharply rising costs were unsurprisingly a major issue for firms in Q2. If they increasingly try to pass these on to the consumer, this would significantly raise the risk of policy tightening by the world’s major central banks. That said, policymakers will be hoping for favourable developments on the diplomatic front, and a return of oil prices to around pre-crisis levels, potentially allowing them to sit on their hands for the rest of 2026."
Ashworth concluded: "Despite some improvement in confidence, accountants globally remain very cautious, likely in part reflecting the uncertain and unpredictable operating environment which has become the 'new normal' in recent years."
Details
Read the GECS Q2 2026 report at https://www.accaglobal.com/gb/en/professional-insights/global-economics/gecs-q2-2026.html
