ACCA’s Q4 2024 Global Economic Conditions Survey and 2025 Global Economic Outlook: A Highly Uncertain World has highlighted opportunities and risks for the global economy.
Confidence among accountants and finance professionals fell quite materially in Asia Pacific in Q4 2024, following a very sharp decline in Q3. It is now at its lowest since Q1 2020. Concerns over the weak Chinese economy and the possibility of US import tariffs have likely weighed on sentiment.
The latter is a major downside risk for the region in 2025. On a more encouraging note, there was only a small fall in the forward-looking New Orders Index for the region, which remains above its historical average.
For the second consecutive year, economic risks were identified as the top concern for finance professionals globally, followed by talent scarcity, regulatory change, and cybersecurity. In Asia Pacific, talent scarcity was in first place, followed by regulatory change and economic risks.
A global economic outlook marked by risks and opportunities
The 2025 Global Economic Outlook examines the prospects for the global economy and key countries, as well as the major risks. Distinguished economist Charles Goodhart suggests that while the US economy may remain strong in 2025, Europe and the UK are likely to struggle.
He remains generally optimistic on India’s prospects. As regards inflation, he predicts that it could ease in the short term but will likely rebound in 2026 and 2027, where upwards pressure may become quite considerable in the US.
Jonathan Ashworth, chief economist at ACCA and author of the report, said: “The global economy should continue to grow at a reasonable, but not particularly exciting pace in 2025. The risks are predominantly on the downside, amid potential changes in US trade policy, a challenging geopolitical backdrop, political uncertainty and rising government bond yields.
The report identifies three key trends to watch in the global economy in 2025:
- Developments with AI: The emergence of AI agents promises new productivity breakthroughs, but hybrid solutions integrating other technologies will be crucial for sustained value.
- Rising geoeconomic fragmentation:Will US trade policies begin to push globalisation into reverse.
- Further retreating from green policies:Amid cost-of-living pressures and political shifts in developed economies, climate-related commitments are under strain, with potential long-term consequences for sustainability.
CFOs on navigating 2025’s uncertainties
Finance leaders identified a number of key risks for businesses in 2025 such as US trade policy, geopolitics, inflation, climate change and cybersecurity. AI remains a priority, but CFOs acknowledged both its transformational potential and disruptive challenges.
Rozaini Mohd Sani, CFO of Johor Corporation, highlighted that Malaysia’s economy is projected to grow between 5% and 5.5% in 2025, exceeding the global average, driven by strong domestic activity and robust demand across the Asia Pacific region.
Alice Wong, CFO of Hong Kong Television Network Limited, shared a cautiously optimistic perspective on the region, noting: “In Asia Pacific, the outlook is generally quite positive amid resilient domestic consumption in some countries, intra-regional trade flows, and a speedier recovery in the tourism sector.”
For further insights, download the full Q4 Global Economic Conditions Survey report here and the 2025 Global Economic Outlook report here.
