Accountancy
experts say economic confidence in Q1 has capitulated as the Pakistani economy struggles
to get to grips with the fallout from the Coronavirus.
A national survey of
senior accountancy practitioners, who reflect the outlook of a large number of businesses
they advise, found that confidence has fallen by more than 5% to -28, a record
low for Q1 registered in the 11-year history of the research.
The report Global Economic Conditions Survey (GECS), jointly published by ACCA
(Association of Chartered Certified Accountants) and IMA® (Institute of
Management Accountants) reveals:
· Global
confidence fell to its lowest level on record with big falls in all regions
· The global
orders index, which tends to be less volatile than confidence, also fell
sharply
· Pakistan employment
and investment tumble to record lows
· Pakistan
set to suffer a sharp economic contraction in coming months
Michael Taylor, chief
economist at ACCA, revealed there was relatively little divergence in
confidence between regions owing to the global nature of the coronavirus
economic shock.
He said: ‘Pakistan economic
sentiment is in line with the rest of the world. Confidence fell everywhere
and, in most cases, sharply and to the lowest since the survey began in 2009.
‘South Asia, Pakistan
in particular, did not show a collapse in confidence in early March. Pakistan
was suffering from weak growth prior to the pandemic and will quickly fall into
economic contraction.
‘While
this survey looks at the economic impact, it is important to remember there is
a human cost both now and in the long-term on wellbeing, skills and the risk of
redundancy.’
Looking
ahead, Michael Taylor concludes: ‘The economic damage in coming months will be
huge. But if appropriate policy action is taken, then conditions for recovery
will be in place when the COVID-19 health crisis is substantially over.’
GECS Q1 2020 can be
found online at: https://www.accaglobal.com/gb/en/professional-insights/global-economics/GECS_Q1_2020.html
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