Accounting
Interesting predictions of accountants' confidence in Asia for Q3 2024
30 Sep 2024
Global confidence from accountants and finance professionals is continuing to grow from previous quarters- what does this mean?
Since the second quarter of 2024, there has been a steady increase in the global confidence of accountants and finance professionals.
For example, Pacific Asia and Western Europe are both currently above their historical averages whereas professionals in the North American market have had difficulties as a result of the economy's sluggish growth in the first half of 2024.
A recent report from the ACCA/IMA Global Economic Conditions Survey for Q2 (2024) raises the question of whether this confidence will continue to strengthen. Let’s take a closer look.
Pacific Asia: the reasons behind increased confidence
The ACCA/IMA report suggested several key indicators for why confidence has risen among professionals in the Pacific Asian regions. These include:
- Consistent economic growth -the confidence has been bolstered by a notable increase in ‘New Orders,’ which indicates a consistent expansion in the economy of Pacific Asia.
- Socio-political and economic stability - improvements in these areas have bolstered the region’s confidence as Pacific Asia continues to play a vital role in the global economy.
- Technology and manufacturing gains - the region’s advances in the technology and manufacturing sectors have been key contributors to its economic success.
- Continued growth from last year - building on the strong growth seen last year, Pacific Asia has maintained this upward trend.
- Resilience (despite cost pressures) - although concerns about cost pressures remain high, Pacific Asia has still seen improvements - sustaining one of the highest growth rates over the past year.
Other rising concerns
South Asia and Africa - there has been a slower increase in economic confidence for finance professionals in these regions compared to Pacific Asia. However, pressures have remained somewhat unchanged compared to previous quarters, and they are still above the 50% average.
The Middle East and Western Europe - concerns about cost pressures in the Middle East are falling below the historical average. Western Europe has also experienced a slight decrease in costs. According to the report, the global average stood just below the 50% mark at the end of the second quarter of 2024. This is a significant drop from the peak of 70% in the second quarter of 2022.
Since Q4 in 2023, there has been a steady decline in overall costs. For global economies, this suggests that policymakers who are focusing on monetary easing should approach economic growth stimulation cautiously.
How cost pressures impact economic uncertainty
- Global fear - the term used to describe widespread concerns that customers or suppliers may go out of business.
In 2020, global fear surged to its highest level since the 2009 economic crisis. However, this isn’t too surprising due to the COVID-19 pandemic. For example, businesses were extremely concerned about suppliers going out of business - peaking at around 20%.
Since the global pandemic, we’ve seen a steady decline in concerns and anxieties among businesses and professionals. Although the post-pandemic recovery is still ongoing, its successes vary by region. This is influenced by factors like geopolitical issues and regional responses to the pandemic.
The report suggests that global fear has generally eased across most regions except Pacific and South Asian regions. However, both regions remain at their historical averages - therefore, this is not too alarming.
Continued growth among the “fear”
While there are still growing cost pressures, Pacific Asia’s manufacturing sector is thriving due to a surge in new orders. The region has outplaced the global average in order growth compared to last year, even though geopolitical tensions limit shipping routes.
This is good news, but unexpected, and contradicts initial forecasts for 2024 as they predicted below-average growth.
Global confidence and politics
We’re now approaching the end of 2024, so the question stands of whether the growth in confidence in the global economy will continue.
Regions like Pacific Asia have shown promising growth, but the overall economic outlook is still heavily influenced by political development. In 2024 so far, we have witnessed elections in several countries, such as Russia, India, South Africa, the EU, and the UK. The USA and Sri Lanka are still yet to hold their presidential elections, so there’s certainly potential for further shifts in global economic sentiment.
The report acknowledges the impact of political events on the global economy. Changes in leadership and policy can significantly alter any predictions. This was proven by the unexpected withdrawal of President Joe Biden in the 2024 campaign.
Looking into the future, it is essential for any professional, decision-maker or business to monitor political developments to assess their potential influence on global economic confidence and stability.
Predictions for Pacific Asia in Q3 and Q4 2024
The report suggests that there will be continued growth in confidence among accountants and finance professionals in the Asia Pacific region.
For example, spending on equipment and projects have surpassed historical averages and, despite a slight slowdown, hiring levels stayed above averages - suggesting a robust outlook for this region.
Driven by the global economic recovery, particularly in the manufacturing and technology sectors, export-oriented economies in Pacific Asia are experiencing significant benefits. However, potential risks do include a steeper-than-expected US economic slowdown and rising geopolitical tensions.
While there are factors that lead to uncertainty, the overall indicators suggest a positive trajectory for the Asia Pacific region for the rest of the year.
What does this mean for you?
Whether you’re new to the finance industry, looking to upskill, or well-established in your career, the growing confidence among accountants can impact your career in several ways. For example:
- Increased opportunities - the positive economic outlook in Asia, particularly in Pacific Asia, suggests increased opportunities for professional growth. This could include new projects, expanded roles, and potentially higher earnings.
- Enhanced job security - rising confidence often correlates with a more stable job market, providing greater security and peace of mind.
- Strategic decision-making - understanding what factors drive confidence in Asia can help you to make informed decisions regarding your career, investments, and business strategies.
- Navigating uncertainty - while the overall outlook is positive, being aware of any risks is crucial for planning and risk management.
- Staying informed - continuously monitoring economic trends, political developments, and industry-specific news will enable you to adapt to changing circumstances and seize emerging opportunities.
By staying informed and understanding the broader context, you are positioning yourself to thrive in the dynamic and evolving Asian economic landscape.
Next steps
While Pacific Asia is experiencing rapid economic growth, there is a significant demand for skilled accountants. Businesses will continue to expand and become more complex, so now is as good a time as ever to upskill and progress your career in accounting.
Browse through our accountancy qualifications and courses where you can subscribe to all levels.
Accounting
Interesting predictions of accountants' confidence in Asia for Q3 2024
30 Sep 2024
Global confidence from accountants and finance professionals is continuing to grow from previous quarters- what does this mean?
Since the second quarter of 2024, there has been a steady increase in the global confidence of accountants and finance professionals.
For example, Pacific Asia and Western Europe are both currently above their historical averages whereas professionals in the North American market have had difficulties as a result of the economy's sluggish growth in the first half of 2024.
A recent report from the ACCA/IMA Global Economic Conditions Survey for Q2 (2024) raises the question of whether this confidence will continue to strengthen. Let’s take a closer look.
Pacific Asia: the reasons behind increased confidence
The ACCA/IMA report suggested several key indicators for why confidence has risen among professionals in the Pacific Asian regions. These include:
- Consistent economic growth -the confidence has been bolstered by a notable increase in ‘New Orders,’ which indicates a consistent expansion in the economy of Pacific Asia.
- Socio-political and economic stability - improvements in these areas have bolstered the region’s confidence as Pacific Asia continues to play a vital role in the global economy.
- Technology and manufacturing gains - the region’s advances in the technology and manufacturing sectors have been key contributors to its economic success.
- Continued growth from last year - building on the strong growth seen last year, Pacific Asia has maintained this upward trend.
- Resilience (despite cost pressures) - although concerns about cost pressures remain high, Pacific Asia has still seen improvements - sustaining one of the highest growth rates over the past year.
Other rising concerns
South Asia and Africa - there has been a slower increase in economic confidence for finance professionals in these regions compared to Pacific Asia. However, pressures have remained somewhat unchanged compared to previous quarters, and they are still above the 50% average.
The Middle East and Western Europe - concerns about cost pressures in the Middle East are falling below the historical average. Western Europe has also experienced a slight decrease in costs. According to the report, the global average stood just below the 50% mark at the end of the second quarter of 2024. This is a significant drop from the peak of 70% in the second quarter of 2022.
Since Q4 in 2023, there has been a steady decline in overall costs. For global economies, this suggests that policymakers who are focusing on monetary easing should approach economic growth stimulation cautiously.
How cost pressures impact economic uncertainty
- Global fear - the term used to describe widespread concerns that customers or suppliers may go out of business.
In 2020, global fear surged to its highest level since the 2009 economic crisis. However, this isn’t too surprising due to the COVID-19 pandemic. For example, businesses were extremely concerned about suppliers going out of business - peaking at around 20%.
Since the global pandemic, we’ve seen a steady decline in concerns and anxieties among businesses and professionals. Although the post-pandemic recovery is still ongoing, its successes vary by region. This is influenced by factors like geopolitical issues and regional responses to the pandemic.
The report suggests that global fear has generally eased across most regions except Pacific and South Asian regions. However, both regions remain at their historical averages - therefore, this is not too alarming.
Continued growth among the “fear”
While there are still growing cost pressures, Pacific Asia’s manufacturing sector is thriving due to a surge in new orders. The region has outplaced the global average in order growth compared to last year, even though geopolitical tensions limit shipping routes.
This is good news, but unexpected, and contradicts initial forecasts for 2024 as they predicted below-average growth.
Global confidence and politics
We’re now approaching the end of 2024, so the question stands of whether the growth in confidence in the global economy will continue.
Regions like Pacific Asia have shown promising growth, but the overall economic outlook is still heavily influenced by political development. In 2024 so far, we have witnessed elections in several countries, such as Russia, India, South Africa, the EU, and the UK. The USA and Sri Lanka are still yet to hold their presidential elections, so there’s certainly potential for further shifts in global economic sentiment.
The report acknowledges the impact of political events on the global economy. Changes in leadership and policy can significantly alter any predictions. This was proven by the unexpected withdrawal of President Joe Biden in the 2024 campaign.
Looking into the future, it is essential for any professional, decision-maker or business to monitor political developments to assess their potential influence on global economic confidence and stability.
Predictions for Pacific Asia in Q3 and Q4 2024
The report suggests that there will be continued growth in confidence among accountants and finance professionals in the Asia Pacific region.
For example, spending on equipment and projects have surpassed historical averages and, despite a slight slowdown, hiring levels stayed above averages - suggesting a robust outlook for this region.
Driven by the global economic recovery, particularly in the manufacturing and technology sectors, export-oriented economies in Pacific Asia are experiencing significant benefits. However, potential risks do include a steeper-than-expected US economic slowdown and rising geopolitical tensions.
While there are factors that lead to uncertainty, the overall indicators suggest a positive trajectory for the Asia Pacific region for the rest of the year.
What does this mean for you?
Whether you’re new to the finance industry, looking to upskill, or well-established in your career, the growing confidence among accountants can impact your career in several ways. For example:
- Increased opportunities - the positive economic outlook in Asia, particularly in Pacific Asia, suggests increased opportunities for professional growth. This could include new projects, expanded roles, and potentially higher earnings.
- Enhanced job security - rising confidence often correlates with a more stable job market, providing greater security and peace of mind.
- Strategic decision-making - understanding what factors drive confidence in Asia can help you to make informed decisions regarding your career, investments, and business strategies.
- Navigating uncertainty - while the overall outlook is positive, being aware of any risks is crucial for planning and risk management.
- Staying informed - continuously monitoring economic trends, political developments, and industry-specific news will enable you to adapt to changing circumstances and seize emerging opportunities.
By staying informed and understanding the broader context, you are positioning yourself to thrive in the dynamic and evolving Asian economic landscape.
Next steps
While Pacific Asia is experiencing rapid economic growth, there is a significant demand for skilled accountants. Businesses will continue to expand and become more complex, so now is as good a time as ever to upskill and progress your career in accounting.
Browse through our accountancy qualifications and courses where you can subscribe to all levels.
