ISLAMABAD, November 3, 2026: Geopolitical instability, rising energy prices and persistent operating costs are threatening global economic growth, even as business activity and new orders show signs of improvement 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 found that business confidence in Asia-Pacific declined sharply despite improvements in investment, employment and demand indicators.
The region’s New Orders Index increased for the second consecutive quarter, approaching its highest level since the survey began. Capital expenditure and employment indicators also strengthened, moving closer to their historical averages.
However, business confidence reversed nearly three-fifths of the gains recorded in the second quarter. Although confidence remained slightly above its long-term average, geopolitical uncertainty and higher energy prices weighed on the regional outlook.
The survey identified geopolitical instability as the leading economic risk for 24.1% of finance professionals in Asia-Pacific, compared with 18.4% globally.
Respondents in the region also expressed greater concern about talent shortages, skills gaps and supply-chain disruptions than their counterparts worldwide.
Operating costs remained a major challenge, with 62% of Asia-Pacific respondents reporting increases during the third quarter, significantly above the survey’s long-term average of 52%.
Expectations of higher interest rates also rose. About 41% of finance professionals in Asia-Pacific anticipated interest-rate increases in their respective countries over the next three months, compared with 30% in the second quarter and 24% in the first.
Globally, nearly 70% of accountants reported rising operating costs, while almost half expected interest rates to increase over the next three months, up from 42% in the previous quarter.
ACCA Chief Economist Jonathan Ashworth said Asia-Pacific’s economic indicators remained encouraging, supported partly by the global boom in artificial intelligence investment.
However, he warned that further increases in energy prices and the anticipated effects of a powerful El Niño weather event could create additional risks for regional growth.
He also cautioned that a significant slowdown in AI-related investment could weaken economic activity.
Alain Mulder, Senior Director of Europe Operations and Global Special Projects at IMA, said the global economy was facing opposing forces.
While investment in artificial intelligence continued to support economic growth, higher energy prices, inflation and rising government bond yields were creating additional pressure on businesses and consumers.
The survey warned that sustained increases in operating costs could force businesses to raise prices, potentially weakening consumer demand.
Continued inflationary pressure could also increase the likelihood of further interest-rate hikes by major central banks, creating additional challenges for investment and economic growth.
The findings highlight the growing uncertainty facing businesses as geopolitical developments, energy markets and monetary policy increasingly influence the global economic outlook.