Accountancy experts say economic confidence in Q1 has capitulated as the Pakistan economy struggles to get to grips with the fallout from the Coronavirus.
A national survey of senior accountancy practitioners, who reflect the outlook of a large number of businesses they advise, found that confidence has fallen by more than 5% to -28, a record low for Q1 registered in the 11-year history of the research.
The report Global Economic Conditions Survey (GECS), jointly published by ACCA (Association of Chartered Certified Accountants) and IMA® (Institute of Management Accountants) reveals:
- Global confidence fell to its lowest level on
record with big falls in all regions
- The global orders index, which tends to be
less volatile than confidence, also fell sharply
- Pakistan employment and investment tumble to record lows
- Pakistan set to suffer a sharp economic contraction in coming months
Michael Taylor, chief economist at ACCA, revealed there was relatively little divergence in confidence between regions owing to the global nature of the coronavirus economic shock.
He said: ‘Pakistan economic sentiment is in line with the rest of the world. Confidence fell everywhere and, in most cases, sharply and to the lowest since the survey began in 2009.
‘South Asia, Pakistan in particular, did not show a collapse in confidence in early March. Pakistan was suffering from weak growth prior to the pandemic and will quickly fall into economic contraction.
‘While this survey looks at the economic impact, it is important to remember there is a human cost both now and in the long-term on wellbeing, skills and the risk of redundancy.’
Looking ahead, Michael Taylor concludes: ‘The economic damage in coming months will be huge. But if appropriate policy action is taken, then conditions for recovery will be in place when the COVID-19 health crisis is substantially over.’
About ACCA
ACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants, offering business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management.
ACCA supports its 219,000 members and 527,000 students (including affiliates) in 179 countries, helping them to develop successful careers in accounting and business, with the skills required by employers. ACCA works through a network of 110 offices and centres and 7,571 Approved Employers worldwide, and 328 approved learning providers who provide high standards of learning and development.
Through its public interest remit, ACCA promotes appropriate regulation of accounting and conducts relevant research to ensure accountancy continues to grow in reputation and influence.
ACCA has introduced major innovations to its flagship qualification to ensure its members and future members continue to be the most valued, up to date and sought-after accountancy professionals globally.
Founded in 1904, ACCA has consistently held unique core values: opportunity, diversity, innovation, integrity and accountability. More information is here: www.accaglobal.com
About IMA® (Institute of Management Accountants)
IMA®, named the 2017 and 2018 Professional Body of the Year by The Accountant/International Accounting Bulletin, is one of the largest and most respected associations focused exclusively on advancing the management accounting profession. Globally, IMA supports the profession through research, the CMA® (Certified Management Accountant) and CSCA® (Certified in Strategy and Competitive Analysis) programs, continuing education, networking and advocacy of the highest ethical business practices. IMA has a global network of more than 125,000 members in 150 countries and 300 professional and student chapters. Headquartered in Montvale, N.J., USA, IMA provides localized services through its four global regions: The Americas, Asia/Pacific, Europe, and Middle East/India. For more information about IMA, please visit www.imanet.org.
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