Business confidence in India falls in Q4, but optimism remains, finds ACCA
· Sentiment in India slightly worsened in Q4, and it is now at its lowest level since the start of 2016
· Sluggish growth in the short-term due to ongoing implementation challenges in a demonetisation campaign
· Long-term growth remains positive, boosted by recent economic reforms
Business confidence in India has fallen in Q4 but remains more optimistic of a swift recovery than the global average, according to the latest Global Economic Conditions Survey published today by ACCA (the Association of Chartered Certified Accountants) and IMA (Institute of Management Accountants).
The survey of over 4,500 finance professionals and business leaders worldwide has found that the economic outlook has improved slightly in the US and China over the last quarter, while confidence dipped in South Asia in Q4, however respondents are more optimistic about their future economic prospects.
ACCA argues the fall in confidence has been caused by:
- Government investment falling to its lowest level since the start of 2016, with many developed markets still firmly in austerity mode
- Changes in the political landscape stemming from the recent US election
- Uncertainty over US / China trade developments
- Concerns over Brexit as well as forthcoming European Elections
ACCA’s Head of International Development Md. Sajid Khan, said, “Sentiment has fallen in India to the lowest level since the start of 2016. This is in part due to a very uncertain global climate, but also primarily due to the challenges of implementing the demonetisation campaign which has been extremely disruptive to normal business operations. Yet there is reason to believe this fall in confidence is a blip. Recent economic reforms have improved the outlook for growth, and confidence over the past year has been higher than the global average. Overall 30% of respondents in South Asia are more optimistic about their future prospects, which is higher than in Europe and Asia-Pacific.”
The Global Economic Conditions Survey (GECS), carried out jointly by ACCA (the Association of Chartered Certified Accountants) and IMA (the Institute of Management Accountants), is the largest regular economic survey of accountants around the world, in terms of both the number of respondents and the range of economic variables it monitors. Its main indices are good predictors of GDP growth in themed countries and its daily trend deviations correlate well with the VIX or ‘fear’ index, which measures expected stock price volatility.
Fieldwork for the Q4 2016 GECS took place between 24th November and 13th December 2016 and attracted 4,551 responses from ACCA and IMA members around the world, including more than 350 CFOs.
About ACCA
ACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants. It offers 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 188,000 members and 480,000 students in 178 countries, helping them to develop successful careers in accounting and business, with the skills required by employers. ACCA works through a network of 100 offices and centres and more than 7,110 Approved Employers worldwide, who provide high standards of employee 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.
Founded in 1904, ACCA has consistently held unique core values: opportunity, diversity, innovation, integrity and accountability. It believes that accountants bring value to economies in all stages of development and seek to develop capacity in the profession and encourage the adoption of global standards. ACCA’s core values are aligned to the needs of employers in all sectors and it ensures that through its range of qualifications, it prepares accountants for business. ACCA seeks to open up the profession to people of all backgrounds and remove artificial barriers, innovating its qualifications and delivery to meet the diverse needs of trainee professionals and their employers. More information is here: www.accaglobal.com