Global Accountants’ Confidence Plummets Near Historic Lows Due to Geopolitical Strains and Surging Costs

A sharp decline in confidence among global finance professionals and accountants was recorded in the first quarter of 2026, dropping to levels reminiscent of the pandemic era. According to the latest Global Economic Conditions Survey (GECS) jointly published by the Association of Chartered Certified Accountants (ACCA) and the Institute of Management Accountants (IMA), severe cost pressures and sweeping economic uncertainties are heavily weighing on sentiment.

The survey, conducted between March 3 and March 19, 2026, captures the immediate ripples of the escalating conflict in the Middle East. The disruption has triggered a notable energy supply shock and heightened geopolitical instability, which respondents now rank as their top priority risk. Cybersecurity and broader economic threats followed closely as the second and third top concerns.

Notably, Chief Financial Officers (CFOs) registered an especially steep drop in morale, bringing their confidence levels to the weakest observed since early 2020.

Silver Linings in Global Demand and Hiring

Despite the overarching pessimism, the report highlighted pockets of resilience in the global economy, primarily driven by strong financial conditions and the artificial intelligence (AI) boom leading up to the Middle East crisis.

• New Orders Recover: The forward-looking Global New Orders Index rebounded firmly from its low point in late 2025, climbing back up to its historical average.
• Employment Stability: The Global Employment Index, tracking corporate hiring and firing trends, showed minor signs of improvement, though it remains slightly below historical averages.
• Capital Expenditure: Corporate spending remained relatively steady, showing only a marginal dip and aligning with typical baseline levels seen over recent years.

Extreme Cost Pressures and Supply Chain Risks

The survey emphasizes a stark rise in operating expenses. Approximately 69% of global financial professionals reported increased costs in Q1 2026—a five percentage point jump from the previous quarter. This surge positions current corporate inflation near the all-time peak of 71% recorded in late 2022 following the outbreak of the war in Ukraine.

A primary driver of these rising expenses is the disruption in the Strait of Hormuz, a critical transit corridor that typically handles 20% of global oil production and liquefied natural gas (LNG) exports. The current logistical bottlenecks have dramatically spiked transport and manufacturing overheads.

Furthermore, the Middle East serves as a vital global supplier of fertilizers, petrochemicals, aluminum, sulphur, and raw components essential for the semiconductor and memory chip industries. Prolonged instability risks driving up long-term global food price inflation and fracturing industrial supply chains.

Rising Corporate Stress and Central Bank Caution

Corporate vulnerabilities are beginning to resurface. The GECS “Fear Indices” revealed that concerns regarding customer and supplier insolvencies rose for the third consecutive quarter, tracking above historical averages. On a positive note, general access to corporate finance remains stable, and delays in prompt payments saw only a minimal increase.

In response to the conflict, global financial conditions have tightened, characterized by rising government bond yields and a strengthening US dollar that continues to pressure emerging markets.

Central banks are facing a delicate balancing act. Given the prolonged period of post-pandemic inflation, policymakers are highly cautious. While a recent two-week ceasefire has offered brief relief to global risk assets, the Federal Reserve, the Bank of England, and the European Central Bank remain on high alert to prevent secondary wage-price spirals. Reflecting this reality, 74% of surveyed professionals expect inflation to climb in their respective countries over the next three months, while 35% anticipate further interest rate hikes.

Source Reference: This article is based on data and insights originally published by ACCA Insights on May 8, 2026. The original report, titled “Global accountants’ confidence close to record lows amid heightened uncertainty and rising costs,” can be accessed via the ACCA Global Insights Portal.