August 4, 2009
Albeit finance professionals’ optimism continues to depend substantially on the actions of national governments, the reliance on state assistance seems to have dissipated since the first quarter of 2009 and business confidence is now more clearly linked to expectations of future growth.
According to ACCA (the Association of Chartered Certified Accountants)’ s global survey of finance professionals for the second quarter of 2009 entitled ACCA Global Economic Conditions Survey, these are tentative signs that panic is no longer a major driver of the global economy.
When asked to predict what the global economy would look like following the credit crunch, finance professionals offered the following:
- Stricter and more pervasive regulation, especially of financial institutions
- Tighter credit conditions
- Increased efficiency, as organisations look inward for cost savings and more efficient ways of doing business
- Stronger governance and internal business controls
- Consumers expected to become cautious net savers
While there is little evidence of economic recovery, there is renewed confidence and optimism. Dr Steve Priddy, ACCA’s Director of Technical Policy and Research indicated that ACCA’s next quarterly survey will look for real changes in trading conditions which support that viewpoint and whether the private sector is backing its confidence by investing in people and capital – or whether public sector finance professionals are right to think that the global economy has some way to go before recovery begins.
The survey is available from ACCA’s website http://www.accaglobal.com/pubs/economy/analysis/acca/technical_papers/Q22009.pdfAuthor : cecilebonino