Geopolitical Risks and Rising Costs Cloud Global Growth, ACCA-IMA Surv

Geopolitical Risks and Rising Costs Cloud Global Growth, ACCA-IMA Survey Finds

A survey by ACCA and IMA says geopolitical tension, higher energy prices and cost pressures threaten worldwide growth despite strong Asia-Pacific activity.

NationPulse Desk

Oct 29, 2026 · 7:32 PM 2 min read

Key takeaways

Geopolitical instability, rising energy prices and cost pressures are identified as top risks to global growth in Q3 2026.

Asia-Pacific New Orders Index improved for the second quarter, nearing its highest level in the survey's history.

Confidence among accountants in Asia-Pacific fell sharply, undoing almost three-fifths of the Q2 increase.

24.1% of finance professionals in Asia-Pacific cited geopolitical instability as the leading risk, versus 18.4% globally.

62% of Asia-Pacific respondents reported higher operating costs in Q3, above the long-term average of 52%.

Geopolitical instability, higher energy prices and persistent cost pressures are now seen as major threats to global economic growth, even as business activity stays resilient and new orders improve in Asia-Pacific, according to a survey by the Association of Chartered Certified Accountants (ACCA) and the Institute of Management Accountants (IMA).

The Global Economic Conditions Survey (GECS) for the third quarter of 2026 reports that the Asia-Pacific New Orders Index rose for a second straight quarter, nearing its highest level ever recorded in the survey. Capital spending and employment metrics also moved up, edging toward their long-term averages.

Nevertheless, confidence among accountants in the region dropped sharply during the quarter, erasing almost three-fifths of the gain seen in Q2. Although confidence stayed slightly above its long-term average, renewed geopolitical tensions and higher energy prices likely contributed to the fall.

In Asia-Pacific, 24.1% of finance professionals named geopolitical instability as the top risk, compared with 18.4% globally. Talent and skills shortages, as well as supply-chain disruptions, were cited more often in the region than worldwide.

Cost pressures remain high, with 62% of Asia-Pacific respondents reporting higher operating costs in Q3 versus a long-term average of 52%. Additionally, 41% expect interest rates in their countries to rise within the next three months, up from 30% in Q2 and 24% in Q1.

On a global scale, nearly 70% of accountants said operating costs are rising, and almost half anticipate higher interest rates in the next three months, up from 42% in Q2.

ACCA Chief Economist Jonathan Ashworth noted that Asia-Pacific's economic indicators stay encouraging, helped by the worldwide artificial intelligence (AI) investment boom. He warned, however, that further energy-price hikes and a strong El Niño event could pose downside risks, and a slowdown in AI investment might also dampen growth.

Alain Mulder, Senior Director, Europe Operations and Global Special Projects at IMA, said the global economy is being pulled in opposite directions, with AI investment supporting growth while higher energy costs, inflation and government bond yields add pressure.

The survey cautions that continued price increases could force firms to pass costs to consumers, weaken demand and raise the odds of further interest-rate hikes by major central banks.

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