Inflation affecting confidence in Pakistan

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KARACHI – The global economic recovery has slowed down again in early 2012, according to a worldwide survey of finance professionals who fear that governments which are already living beyond their means may struggle to get it back on track through extra public spending, says a press release.


The Global Economic Conditions Survey (GECS) for the second quarter of 2012, undertaken by ACCA (the Association of Chartered Certified Accountants) and IMA (the Institute of Management Accountants), cautioned that growth across the world’s most developed economies has stalled once again and that the global economy is as fragile as it has ever been in the last three years.

The global survey of 2,700 professional accountants, now well into its third year, suggests that hints of a stronger recovery in early 2012 were mostly down to misplaced optimism, and that most of the gains made at the time have since been reversed.


Accountants working in major markets such as the US, China, Russia, Malaysia, or Pakistan - economies relied on by others for trade and export opportunities - believe that fiscal stimulus by their governments is already unsustainable. It was in only a few markets that respondents believed that their governments could spend both robustly and sustainably – places such as Singapore, or the UAE.


Manos Schizas said: “ Finance professionals who responded to this survey were quite at ease with the prospect of austerity until mid-2010. Then the recovery failed to take off and everything changed. Relatively few believe their governments can make austerity work, even in countries such as Ireland where it has been executed quite successfully. Except this time there is a limit to what even countries with strong credit ratings and no liquidity constraints, such as the US and China, can do.”


Courtesy: the Nation

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