Maravi

Global economic recovery may be a mirage, warns ACCA

Global economic recovery may be a mirage, warns ACCA
By Florence Bupe
Wed 13 Jan. 2010, 04:00 CAT

THE Association of Chartered Certified Accountants (ACCA) has warned that the anticipated global economic recovery may turn out to be a mirage in view of the slowdown in the recovery rate.

According to a Global Economic Conditions Survey carried out by the institute, there are suggestions that a full economic recovery was moving further away by the day.

“While the fourth quarter Global Economic Conditions Survey by ACCA has provided the accountancy body with its first firm evidence that economic conditions are finally improving, it also suggests that a full recovery is moving further away by the day. Despite all this good news, the rate of global recovery is actually slowing down,” the survey revealed.

The survey attracted 1,700 respondents from the financial sector in 99 countries across continents, most of whom projected a very weak recovery, with 11 per cent expecting the downturn to last another three years.

The survey indicated that investments were still falling across all regions and sectors even though evidence of market failure in the financing of investments was becoming less prominent.

It was further observed that unemployment levels had continued to rise while the state of government finances continued to be a source of worry for the finance sector.

“Unemployment is still rising and the state of government finances continues to worry many accountants, with a real concern that the public sector will become a drag on the recovery as heavily indebted governments are forced to make cutbacks,” the survey disclosed.

The survey revealed that Africa was at the lead of economic recovery, with its business revenues rising faster than any other region.

Africa’s business confidence is also in the lead.

And ACCA director of technical policy and research Steve Priddy has forecast at least another year of challenging economic conditions.

Labels: ACCA, GREAT DEPRESSION II

posted by MrK @ 6:55 AM