Confidence among accountants and financial professionals around the world ticked up slightly in the second quarter of the year, the first increase since the middle of last year, according to a
North America experienced a modest rebound in confidence, especially in the U.S., but it nevertheless remains near record lows thanks to high import tariffs and continuing policy uncertainty. Confidence rose to some extent in Western Europe but dropped significantly in the Asia Pacific region.
Geopolitical instability became the top global risk for the first time in the ACCA and IMA GECS survey history, surpassing economic volatility. Operating cost pressures eased globally, but concerns remain elevated in North America and Western Europe.
Economic fears are tied to regulatory and compliance risks as the second-highest risk priority. Talent scarcity and cybersecurity remain critical but were slightly less prominent this quarter. Climate change, fraud, and supply chain risks fell lower down the agenda for survey respondents, suggesting a renewed focus on macro-external volatility, with boards and executives reacting to intensifying global conflicts, regulatory unpredictability and economic pressure.
"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," said ACCA chief economist Jonathan Ashworth in a statement,. "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 the 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."
The global New Orders and Capital Expenditure indices both slid, although the former is at its historical average and the latter not much below that level. Meanwhile, the Employment Index improved and is not that far below its historical average.
"According to accountants, global cost pressures eased, although there are divergent regional pressures," Alain Mulder, senior director of Europe operations and global special projects at the IMA, said in a statement. "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. This raises the risk that firms may attempt to raise prices over the coming months. Rising inflation would complicate the task of the Federal Reserve, if slowing growth and an easing jobs market begins to increase the need for a loosening in monetary policy."
