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Accountants’ Confidence Drops in 2023, Fear of Client Bankruptcies



Accountants' Confidence Drops in 2023, Fear of Client Bankruptcies
Accountants' Confidence Drops in 2023, Fear of Client Bankruptcies

ACCA and IMA Survey: Accountants’ Confidence Drops, Fear of Client Bankruptcies. The Association of Chartered Certified Accountants (ACCA) and the Institute of Management Accountants (IMA) released their latest Global Economic Conditions Survey (GECS), revealing a decline in global accounting professionals’ confidence.

The report shows a downward trend in the last three quarters of 2023. The global economy exhibits modest growth, with variations across regions. North America saw a rebound in the last quarter after a dip in Q3, while South Asia and the Middle East show signs of improvement.

However, Western Europe and the Asia-Pacific region experience a decline potentially linked to concerns over China’s economic recovery. “Progress in Africa has been dampened by a confidence drop in the last quarter,” the report states.

Accountants express concerns about possible client and supplier bankruptcies, aligning with previous trends. Increasing bankruptcies and stringent monetary policies raise worries for 2024. Key identified risks include economic risk, employee retention, and changes in regulatory frameworks.

The ACCA and IMA survey provides crucial insights into economic activity. Conducted in Q4 2023 with nearly 1,500 participants worldwide, the study highlights persistent concerns about high costs.

“Accountants’ worries about cost increases have eased compared to the previous quarter, but they remain high compared to historical trends. This suggests that financial market expectations regarding the timing and scale of central bank interest rate reductions in 2024 may be overly optimistic,” says Jonathan Ashworth, ACCA’s Chief Economist.

Source: Defi Media

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