Arab Today, arab today as economic confidence plummets among the world’s hirers
Last Updated : GMT 23:59:57
Arab Today, arab today
Arab Today, arab today

Middle East employment freeze looms

As economic confidence plummets among the world’s hirers

Arab Today, arab today

Arab Today, arab today As economic confidence plummets among the world’s hirers

The latest Global Economic Conditions Survey logo
Dubai - Arab Today

The latest Global Economic Conditions Survey from ACCA and IMA, released today, found that more half of firms are either cutting or freezing employment, while only 14% are increasing investment in staff. Responding to the findings, Faye Chua, ACCA head of business focus said:

“Take North America out of the equation and the economic picture painted by this survey isn’t a pretty one. Emerging markets are besieged. Revenues for commodities firms have collapsed since mid-2014. And business confidence in China has fallen to its lowest level since our records began.

“Almost half of businesses reported a drop in income in Q1. As a result, every region except North America saw a jump in the number of businesses cutting capital expenditure. With emerging economies continuing to struggle with low commodity prices and many businesses on a spending lock down, the outlook for the global economy is becoming increasingly gloomy.”

According to Faye Chua, it is the emerging markets suffering most from bottom lines being squeezed:

“Wages are rising rapidly in many parts of the world and businesses are finding it harder to cope as revenues come under increasing pressure. The sharp drop against the dollar experienced by many currencies will also have pushed up costs, making imports more expensive and raising the value of dollar-denominated debts. All this means that firms in emerging-market economies are very pessimistic about their prospects.”

The Middle East is still coming to terms with the reality of permanently lower oil prices. Business confidence fell to a record low in Q1, with 59% of firms reporting that they had become less optimistic about their prospects in Q1, compared with a global average of 48%, and 45% of businesses reporting that falling revenue is a problem.

However, the biggest recent shift has been the increase in the proportion of firms expecting government spending to be cut over the next five years, which is now higher than in any other region. The region’s governments have healthier finances than those of most commodity-reliant economies, which means that they can take a more controlled approach to spending cuts, yet 30% of firms expect public spending to decrease “significantly”.

What’s more, Faye Chua warns that global policymakers could be running low on ammunition in the fight to turn things around:

“In developed economies, governments have worked hard to stabilise their debt-to-GDP ratios. Will they want to reverse that good work and risk the wrath of bond investors? It’s highly unlikely. Instead, we’ll see the heavy lifting left to central banks in the main. The problem with this approach is there are serious doubts around their ability – or indeed inclination – to provide more support.”

For Faye Chua, pulling the global economy out of the doldrums is not going to be achieved in the short term:

“Once income begins to drop and businesses stop hiring, getting them to a point where they are confident enough to begin doing so again is difficult - but vital.

“The one positive is business confidence in non-OECD economies did pick up slightly in Q1, led by central and eastern Europe - and Russia in particular. Let’s hope that is a sign of more positive news to come.”

Fieldwork for the Q1 2016 GECS took place between 26 February and 15 March, and attracted more than 1,200 responses from ACCA and IMA members around the world, including more than 100 CFOs. Nearly half the respondents were from small and medium enterprises, with the rest working for large firms of more than 250 employees. To read the full report, please visit http://www.accaglobal.com/gb/en/technical-activities/technical-resources-search/2016/april/global-economic-conditions-q1-2016.html

 

arabstoday
arabstoday

GMT 09:28 2016 Friday ,09 December

The Middle East must collaborate

GMT 07:57 2016 Wednesday ,07 December

British PM joins Gulf summit

GMT 08:26 2016 Wednesday ,19 October

Spending cuts a must in Gulf

GMT 10:56 2016 Sunday ,07 August

Al Mazaya Holding acquires 50% stake

GMT 04:03 2016 Wednesday ,29 June

DWTC events contributes AED 12bn
Arab Today, arab today
Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today as economic confidence plummets among the world’s hirers Arab Today, arab today as economic confidence plummets among the world’s hirers

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today as economic confidence plummets among the world’s hirers Arab Today, arab today as economic confidence plummets among the world’s hirers

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today Sheraton Grand Hotel reveals its deals

GMT 12:20 2017 Monday ,25 September

Sheraton Grand Hotel reveals its deals
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Iraq Kurds in historic independence vote

GMT 15:20 2017 Monday ,25 September

Iraq Kurds in historic independence vote
Arab Today, arab today North Korea 'more opaque'

GMT 10:50 2017 Sunday ,24 September

North Korea 'more opaque'
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today 'Lady Beast' fights for girl gamers

GMT 10:27 2017 Sunday ,24 September

'Lady Beast' fights for girl gamers
Arab Today, arab today Conditions growing dire    

GMT 09:22 2017 Monday ,25 September

Conditions growing dire    
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Chevrolet's first 9-speed auto debuts

GMT 18:58 2017 Monday ,25 September

Chevrolet's first 9-speed auto debuts
Arab Today, arab today Third generation adds more power

GMT 13:40 2017 Sunday ,24 September

Third generation adds more power
Arab Today, arab today Lebleba is preoccupied in filming 'Back Street'

GMT 08:56 2017 Thursday ,21 September

Lebleba is preoccupied in filming 'Back Street'
Arab Today, arab today Psychologists help Mexico deal

GMT 05:05 2017 Sunday ,24 September

Psychologists help Mexico deal

GMT 08:59 2017 Wednesday ,20 September

Youssra prepares for launching her program

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 20:10 2017 Saturday ,23 September

Big Western brands polluting oceans

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 12:02 2017 Sunday ,24 September

Harry visits mental health hospital

GMT 11:11 2017 Sunday ,24 September

The dark side of new tourism hope

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday