Skip to main content

Pandemic hurts domestic demand and recession hits exports


Economic analysis reveals the impact on Pakistan’s employment and confidence

ACCA’s Q2 Global Economic Conditions Survey (GECS) published today, reflects the scale of the global recession now under way. Globally, employment indices plummeted to record lows in the latest survey, consistent with the most severe recession in decades.

Pakistan is heading for economic contraction this year as pandemic mitigation measures hurt domestic demand and global recession hits exports. There is also a massive hike in unemployment – the Employment Index stands at -86.95 compared to 57.14 in Q1 and confidence is at an all-time low in Q2 at -78.26 compared with -28.57 in Q1. But the inflation-prone region has seen a dramatic fall in inflationary pressures – inflation concerns index fell by 25 points to just 20 in the Q2 survey – the long run average is 51. It also transpires that public spending expenditure has lowered from -33.33 in Q2 from 20 in Q1.

Michael Taylor, ACCA’s Chief Economist said: ‘Confidence in South Asia fell further in Q2, possibly reflecting that the region was late to see the spread of COVID-19. Also, activity indicators also remain weak, despite a slight improvement in the orders balance and it is worth noting that it is the only region to do so.’

He added: ‘The change in the GECS global index of measured concern about customers and suppliers going out of business underlines the current extremely poor global economic situation.  Both these series had trended sideways at relatively low levels in recent years but shot up to record highs in Q2 – to 23% for suppliers and 47% for customers.’

Special Covid-19 related questions in this GECS show an approximate 50-50 split between those expecting economic recovery in the second half of this year and those expecting it sometime in 2021.

Sajjeed Aslam, Head of ACCA Pakistan, said: ‘ACCA members have played a crucial role in the first phase of the pandemic – supporting businesses and organisations to keep trading. At this time of economic turbulence, accountants are both value creators and value protectors, helping their clients and the businesses they work in to make informed economic decisions. They will now undoubtedly play a crucial role in the recovery phase.’

The latest edition of GECS is here: https://www.accaglobal.com/gb/en/professional-insights/global-economics/GECS_Q2_2020.html

Comments

Post a Comment

Popular posts from this blog

Peshawar Zalmi Releases "Zalmi Raalal" Official Anthem Powered by TCL

             TCL, Pakistan's No.1 LED TV Brand, in collaboration with Peshawar Zalmi, has released their most awaited anthem for PSL 8, " Zalmi Raalal ". Directed by the maestro Hassan Dawar himself, "Zalmi Raalal" is a star-studded, power-packed amalgamation of music, fashion, and sports, the three foremost passion points of Peshawar Zalmi. Produced by Naughty Boy, who has worked in the global music industry with the likes of Beyoncé, Wiz Khalifa, and Sam Smith, the music video features cricket's biggest superstars Darren Sammy and Babar Azam, as well as Pakistan's biggest celebrities Mahira Khan and Hamza Ali Abbasi. Peshawar Zalmi's official anthem for 2023, "Zalmi Raalal", is an ode to passion, a story entailing the beauty and power of the KP region and its people. The anthem has crossed one million views on all online platforms since its release, and the number is increasing fast.   The star-studded and narrative-centric anthem feature...
Post a Comment
Read more

YouTube Partner Program paves new methods for content creators to earn revenue on the platform

             Today YouTube announced the expansion of its monetisation system with   YouTube Partner Program  (YPP). YouTube shared that it is expanding the platform’s monetization system to allow more creators to join the program by new ways for creators to earn revenue through Shorts, and re-imagining the music industry and creator dynamic by opening up ads monetization for those who feature music in their videos. With this new chapter, YouTube  now offers  ways  for over 2M partners to make money. The expansion of the partner program will enable more opportunities for creators and artists on the platform in all types of different creative formats.  Starting from early 2023, Shorts-focused creators can apply to YPP by meeting a threshold of 1K subscribers and 10M Shorts views over 90 days. These new partners will be able to enjoy all the benefits YPP offers, including ads monetization across Shorts and long-form YouTube ...
Post a Comment
Read more

Corporate reporting on sustainability strengthens significantly

ISSB standards to provide consistent global baseline Corporate reporting of sustainability-related information takes a significant step forward with the publication of two ground-breaking global standards.   ACCA welcomes the publication of two standards from ISSB (the International Sustainability Standards Board) IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures.   Helen Brand, ACCA chief executive, said: ‘The launch of these first two global sustainability standards is an important and significant step forward in business reporting, providing a global baseline for comparable information on sustainability issues, which will help investors, financial markets and society more widely. The focus they provide will help drive the positive changes we need in the way businesses operate in the face of the threat from climate change.   ‘ACCA will continue to support the ISSB’s important work. The inf...
Post a Comment
Read more