This special report assesses the challenges that China is facing in d...
2020-06-02 1 ENGLISH REPORTS
ACCA’s Q1 2020 Global Economic Conditions Survey (GECS) was conducted from 28 February to 12 March inclusive. This period included the spread of COVID-19 to Europe and the US and saw some of the initial policy responses, mainly from central banks. While the major impact on economic activity from lockdowns and business closures had not yet begun to be experienced globally, by this time such effects were having quite profound impacts in the Asia–Pacific region, the source of the outbreak. This geographical split is reflected in some of the key indicators in the Q1 GECS. Confidence fell everywhere: in most cases, sharply and to the lowest levels since the survey began. The Q1 drop in Asia–Pacific confidence is less than the global average, but confidence here was already relatively weak as a consequence of US–China trade tensions. Hence, it took a relatively small drop to reduce confidence in Asia–Pacific to the lowest level among all regions. Western Europe and the Middle East have only a slightly higher confidence level. Indeed, there is relatively little divergence in confidence between regions, which is to be expected given the global nature of the COVID-19 economic shock.
Our data survey shows that the impact of COVID-19 is extensive, affecting organisations irrespective of size, sector or geography. Across a wide range of parameters, respondents have identified key issues facing their organisations. Businesses are confronting a wide range of challenges that are, crucially, interconnected and present right across the organisation operational value chain (Figure 1.1). The challenges faced by many organisations represent the classic issues for business as the global economy downturns, but magnified by complete lockdown in many jurisdictions. Falling customer demand is compounded by supply chain disruptions as logistics are severely impaired, creating challenges in fulfilling whatever customer order demand may still exist. At the same time, some organisations are immediately deferring new product and service launches and putting capital investment plans on hold.
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