DigitalCFO Newsroom | 15 July 2022
Singapore’s Ministry of Trade and Industry (MTI) estimated that the country’s quarter-on-quarter GDP saw zero growth in the second quarter.
The Institute of Management Accountants (IMA), they have just released their quarterly Global Economic Conditions Survey (GECS) report for Q2 2022. The survey took place between 8 and 17 June 2022 with 949 responses from ACCA and IMA members, including over 100 CFOs.
Just yesterday, Singapore’s Ministry of Trade and Industry (MTI) estimated that the country’s quarter-on-quarter GDP saw zero growth in the second quarter. IMA’s GECS report for Q2 2022 anticipates that due to the slowing of growth in advanced economies where it is possible that it will come to a standstill, the APAC region will suffer from reduced demand for its exports. The report also highlighted that accounting and finance professionals are more confident in the APAC region as compared to major regions as confidence fell by the least and a slight increase in the orders index, one of only two regions to record a rise. This observation is attributed to the improved picture in China, helped by the lifting of the Shanghai lockdown.
Other key findings of the report also include:
- An observed sharp drop in global confidence due to the surge in inflation, exacerbated by the war in Ukraine
- Close to 60% of respondents perceived supply shortages and supply chain issues as the highest risks followed by the increased interest rates in response to higher inflation at 55%. While this quarter saw a drop in perceived risk relating to further waves of Covid-19 infections and associated restrictions
- Almost 70% of respondents expressed concern about rising operating costs correlated with rising energy and transport costs caused by supply shortages in the GECS index of concern
Sentiments of weak growth for the rest of this year based on the GECS Q2 report is also in line with the adjusted forecast by the Organisation for Economic Co-operation and Development (OECD) as the organisation also downgraded its global GDP forecasts to just 3% this year which is 1.5% points weaker than the projected figure in Dec 2021.
The GECS has been conducted for over 10 years. Its main indices are good lead indicators of economic activity and provide valuable insight into the views of finance professionals on key variables, such as investment, employment and costs.
