ISLAMABAD: Geopolitical instability, higher energy prices and persistent cost pressures are weighing on the global growth outlook, even as business activity and new orders in Asia-Pacific remain resilient, according to a survey conducted by the Association of Chartered Certified Accountants (ACCA) and the Institute of Management Accountants (IMA).
The Global Economic Conditions Survey (GECS) for the third quarter of 2026 said the Asia-Pacific New Orders Index improved for a second consecutive quarter and moved close to its highest level in the survey’s history. Capital expenditure and employment indicators also strengthened, edging towards their historical averages.
However, the survey noted a sharp fall in confidence among accountants in the region during the quarter. The decline reversed almost three-fifths of the increase recorded in the second quarter. Confidence still remained slightly above its long-term average, but renewed geopolitical tensions and rising energy prices may have contributed to the weaker sentiment.
In Asia-Pacific, geopolitical instability was cited as the top risk by 24.1 per cent of finance professionals, compared with 18.4 per cent globally. Talent and skills shortages, along with supply-chain disruptions, were also mentioned more often by respondents in the region than by those worldwide.
Cost pressures also remained high. Around 62 per cent of Asia-Pacific respondents reported an increase in operating costs in the third quarter, against the survey’s long-term average of 52 per cent. At the same time, 41 per cent said they expected interest rates in their countries to rise over the next three months, compared with 30 per cent in the second quarter and 24 per cent in the first quarter.
At the global level, nearly 70 per cent of accountants said operating costs had increased, while almost half expected interest rates to rise over the next three months, up from 42 per cent in the second quarter.
ACCA Chief Economist Jonathan Ashworth said Asia-Pacific’s economic indicators remained encouraging, with the region benefiting from the global artificial intelligence investment boom. He, however, warned that further increases in energy prices and the likely impact of a powerful El Niño weather event posed downside risks. A significant slowdown in AI investment could also affect growth.
Alain Mulder, Senior Director, Europe Operations and Global Special Projects at IMA, said the global economy was being pulled in different directions, as AI investment supported growth while higher energy prices, inflation and government bond yields added to pressure.
The survey cautioned that continued price increases could compel businesses to transfer higher costs to consumers, weaken demand and raise the possibility of further interest-rate hikes by major central banks.
