The latest Global Economic Conditions Survey (GECS) from the ACCA and IMA indicated that the economic fallout from the Middle East conflict is continuing to weigh on businesses worldwide, with operating costs reaching new highs.
The survey, which received 647 responses, was carried out between 3 June and 17 June, before the latest escalation in fighting and the reinstatement of the US naval blockade.
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More than three-quarters of accountants globally reported higher operating costs in the second quarter of 2026 (Q2 2026).
This exceeds the previous record set in the wake of the Russia-Ukraine conflict.
Respondents cited surging commodity prices and supply chain disruptions linked to the Middle East conflict as key drivers of these rising costs.
Some 83% of chief financial officers reported increased costs in Q2, following a jump of more than 20 percentage points from Q1.
This level is close to the peaks seen in 2022 and 2023, underscoring the scale of the pressures facing finance teams.
Despite these sharp cost increases, confidence among accountants around the world improved in Q2 compared with Q1.
Although sentiment remains weak by historical standards, the uptick is seen as reflecting the resilience of the global economy and, at the time of the survey, signs of possible progress towards resolving the conflict.
At the same time, the global indices for new orders, capital expenditure and employment all declined, pointing to a moderation in global growth.
Confidence among accountants remains subdued in North America and Western Europe compared to long-run norms.
By contrast, Asia-Pacific saw a strong rebound in confidence in Q2, taking sentiment there to meaningfully above its historical average.
Economic pressures re-emerged as the top risk priority for accountants in Q2 2026, selected by 22% of respondents.
Geopolitical instability followed at 20%, with cybersecurity cited by 14% as their main concern.
Respondents noted that today’s risk environment extends beyond the traditional management of economic cycles.
They pointed to the intersecting effects of prolonged wars, growing cybercrime and ongoing policy uncertainty.
AI was a prominent theme in the feedback, with comments focusing on sustainable value creation, cyber resilience and clear accountability.
ACCA chief economist Jonathan Ashworth said: “Sharply rising costs were unsurprisingly a major issue for firms in Q2. If they increasingly try to pass these on to the consumer, this would significantly raise the risk of policy tightening by the world’s major central banks.”
