APAC finance professionals more confident on economy but talent risks rise

US economy resilience and improvements in China and Japan propped up their confidence.

Asia Pacific finance professionals and accountants’ confidence in the region’s economy experienced a surge in Q1, according to a study by the (Association of Chartered Certified Accountants (ACCA). This is reportedly the third-largest increase in the survey’s history. 

Confidence for employment logged a solid increase. 

Several factors have probably contributed to the improvement, ACCA said in the Global Economics Conditions Survey. 

“These include the resilience of the U.S. economy, signs of improvements in the global economy and manufacturing sector, and some improvement in the Chinese economic data outside the housing sector,” the report read.

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There are also reportedly increasing signs that Japan could potentially be emerging from decades of deflation, and could also have been a driver, it added.

However, cost concerns rose noticeably in APAC, as was in Africa and South Asia.

Globally, finance professionals’ confidence in the global economy has hit a new high in the first quarter of 2024, the poll found. 

Talent retention risks are also on the rise. Responses in the global risks section of the report reportedly demonstrate how the ripple effects of economic uncertainty have been exacerbated by rising geopolitical and talent scarcity challenges. 

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“Respondents across all sectors and regions said that they are feeling the impact of talent retention risks, with numerous respondents describing the skills shortage as an epidemic,” ACCA said.