Geopolitical Tensions and Rising Costs Threaten Global Growth, ACCA-IMA Survey Warns
Global Growth faces risks from geopolitical tensions, rising energy prices and higher operating costs, according to the ACCA-IMA survey.
Geopolitical instability, rising energy prices and persistent cost pressures are threatening global economic growth despite resilient business activity and improving new orders in Asia-Pacific, according to the latest survey 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 found that the Asia-Pacific New Orders Index improved for a second consecutive quarter, approaching its highest level in the survey’s history. Capital expenditure and employment indicators also strengthened, moving closer to their long-term averages.
However, confidence among accountants across the region fell sharply, reversing almost three-fifths of the increase recorded in the second quarter. Although confidence remained slightly above its long-term average, renewed geopolitical tensions and higher energy prices may have contributed to the decline.
Geopolitical Instability Emerges as Leading Risk
Geopolitical instability was identified as the leading risk by 24.1% of finance professionals surveyed in Asia-Pacific, compared with 18.4% of respondents globally.
Finance professionals in the region also reported greater concern about talent and skills shortages and supply-chain disruptions than their counterparts worldwide.
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Operating costs continued to rise. Around 62% of Asia-Pacific respondents reported higher costs in the third quarter, compared with the survey’s long-term average of 52%.
Meanwhile, 41% expected interest rates in their respective countries to increase over the following three months. This represented a rise from 30% in the second quarter and 24% in the first quarter.
Globally, nearly 70% of accountants reported rising operating costs. Almost half also anticipated higher interest rates over the next three months, up from 42% in the previous quarter.
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ACCA Chief Economist Jonathan Ashworth said Asia-Pacific’s economic indicators remained encouraging, with the region benefiting from the global investment boom in artificial intelligence (AI).
However, he warned that further energy price increases and the expected impact of a powerful El Niño weather event could weaken the outlook. A significant slowdown in AI investment could also weigh on economic growth.
The findings suggest that strong demand in some sectors may not fully offset the risks posed by rising costs, geopolitical uncertainty and potential disruptions to investment.
Rising Costs Could Trigger Further Rate Hikes
Alain Mulder, IMA’s Senior Director for Europe Operations and Global Special Projects, said the global economy faced competing pressures.
He noted that AI investment was supporting economic activity, while higher energy prices, inflation and rising government bond yields were creating additional challenges.
The survey warned that sustained price increases could force businesses to pass higher costs on to consumers. This could weaken demand and increase the likelihood of further interest-rate increases by major central banks.
The findings highlight the difficult balance facing policymakers and businesses as they seek to sustain economic activity while managing inflationary pressures and geopolitical risks.
