Finance professionals believe governments may struggle to get back on the path of growth through extra public spending, according to a survey by the Association of Chartered Certified Accountants (ACCA) and the Institute of Management Accountants (IMA).
The Global Economic Conditions Survey, conducted in the second quarter this year, shows accountants who work in developed economies have rethought their attitudes towards public spending as the global economic recovery slowed down in 2012.
Professionals’ working in markets such as the US, feel fiscal stimulus by the government is already unsustainable, whereas in few markets such as Singapore or the United Arab Emirates, the respondents think governments could spend robustly and sustainably.
In the US, 49% of respondents expect government spending to stabilise. However, the survey found, 81 % of the accountants consulted said government spending must fall in the next five years, marking a shift in favour of austerity.
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ACCA and IMA surveyed 2,700 professional accountants.