Confidence among global accountants remains fragile despite Q2 rise: GECS
The New Orders and Capital Expenditure indices both declined modestly, although the former is at its historical average and the latter not much below and 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.
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 U.S. trade policy, was likely the key factor weighing on sentiment.
Jonathan Ashworth, Chief Economist, ACCA, said: 'Global growth has generally proved quite resilient in the first half of 2025, despite the large increases in U.S. tariffs and massive rise in uncertainty. 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 U.S. inflation higher over coming months, and as uncertainty and tariffs weigh on the U.S. and global economies, some slowing in global growth looks likely over the second half of 2025.'
Alain Mulder, Senior Director, Europe Operations & Global Special Projects at IMA said: 'Global cost pressures eased according to accountants, 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, raising the risk that firms may attempt to raise prices over coming months.'
Copyright Business Recorder, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
7 hours ago
- Business Recorder
PCDMA warns ‘Abrupt rollout of FBR's new e-invoicing disastrous for SMEs'
KARACHI: The Pakistan Chemicals & Dyes Merchants Association (PCDMA) has warned that the abrupt rollout of the Federal Board of Revenue's (FBR) new e-invoicing system, set to take effect from August 1, 2025, could prove disastrous for Small and Medium-sized Enterprises (SMEs) due to a lack of preparation and consultation with stakeholders. Terming the move unfeasible and poorly timed, PCDMA Chairman Salim Valimuhammad urged the FBR to delay implementation, arguing that most traders lack the technical infrastructure, training, and resources necessary to comply with the new digital requirements. PCDMA Chairman labelled the sudden implementation as 'unjust and disastrous' for businesses, particularly Small and Medium-sized Enterprises (SMEs). He criticized the FBR for rolling out the system without conducting awareness campaigns, training programmes, or seminars to equip taxpayers for compliance. 'The FBR's schedule is completely detached from ground realities,' Valimuhammad said. 'Most taxpayers lack the IT infrastructure, technical expertise, and even stable electricity needed to adopt this system.' He highlighted that small traders, in particular, are ill-equipped to register, issue vouchers, and generate e-invoices overnight without proper guidance. The PCDMA chairman also pointed out the absence of stakeholder consultation prior to the issuance of the SRO 1413 (l)12O25. He noted that many businesses have sought a 60-day extension to prepare for the transition, but the FBR has yet to provide a clear roadmap. Valimuhammad proposed a phased implementation, starting with public limited companies, followed by a performance review before extending the policy to smaller businesses. 'If the e-invoicing system hasn't been fully successful for companies with turnovers exceeding one billion rupees, how can it be imposed on small traders with even fewer resources?' he questioned. Expressing willingness to cooperate, Valimuhammad offered PCDMA's support for industry-wide training. 'If we are educated on this system, we will ensure all our members are trained. I am ready to learn even at this stage in my life, but we must be taught first,' he said. The PCDMA chairman urged the FBR chairman to defer the e-invoicing mandate until comprehensive training and awareness initiatives are in place, warning that the current approach risks disrupting business operations across the country. Copyright Business Recorder, 2025
Business Recorder
7 hours ago
- Business Recorder
Operation against sugar profiteers intensified
LAHORE: The Lahore district administration on Saturday intensified its crackdown on sugar profiteers, ensuring the essential commodity is available at regulated prices for the city's residents. According to the administration, the Assistant Commissioners, SDOs from the Punjab Enforcement and Regulatory Authority (PERA), and Price Control Magistrates have been actively monitoring markets to enforce compliance with fixed rates. The administration's zero-tolerance policy has led to significant actions, including fines imposed on multiple shopkeepers and the sealing of one shop found selling sugar at Rs190 per kg, with a case registered against its owner. To address complaints of sugar shortages in Baghbanpura, the administration swiftly supplied 36 tonnes of sugar to stabilise availability. Commenting on the crackdown, Deputy Commissioner Syed Musa Raza said that sugar would be sold at Rs173 per kg across Lahore, reinforcing the administration's commitment to preventing exploitation through inflated prices. 'The ongoing crackdown targets profiteers and hoarders, with strict penalties for violations. To facilitate reporting, the administration has established a dedicated control room number (0307-0002345) and encouraged residents to use social media platforms to lodge complaints about overpricing,' he added. He made it clear that exploitation under the guise of business will not be tolerated, and the administration is working tirelessly to ensure the availability of essential goods at fair prices. 'These efforts reflect the administration's dedication to protecting Lahore's residents from unfair trade practices, fostering a stable and equitable market environment through proactive enforcement and vigilant oversight,' he added. Copyright Business Recorder, 2025
Business Recorder
8 hours ago
- Business Recorder
Tax exemption scandal hits excise dept
LAHORE: A damning audit report has revealed widespread irregularities in the tax exemption process for 5-marla houses, with serious discrepancies and favouritism allegedly practiced by the excise department. According to the 2022-23 audit report, a staggering Rs 136.5 million in tax exemptions were granted under dubious circumstances, with many ineligible individuals exploiting the 5-marla house exemption clause to evade property taxes. The audit report highlights glaring lapses, including cases where houses exceeded the 5-marla limit, while others lacked necessary documentation to qualify for exemptions. The report slams the department for granting exemptions without proper field verification and scrutiny, suggesting collusion and negligence among officials that resulted in massive losses to the treasury. The authorities have been directed to ensure immediate recovery of the exempted amount and take action against those responsible. The audit report, tabled in the Punjab Assembly, recommends ensuring transparency in the tax exemption process to prevent such scandals in the future. Copyright Business Recorder, 2025
