Job prospects for expats around the world look challenging as more than half of companies are freezing recruitment or cutting jobs.
Only 14% are seeking new staff, according to a survey by accountancy body ACCA.
The research shows that if North America is ignored, the business landscape for the rest of the world is harrowing.
“Emerging markets are under siege, commodity firms have seen revenues collapse and business confidence in China has evaporated to the lowest since records started,” said Faye Chua, ACCA head of business focus.
She explains that managers and executives who took part in the survey reported that businesses in every region except North America faced spending cuts.
Struggling to survive
“The outlook is gloomy around the world,” said Chua. “Businesses outside North America have a lock down on spending – including investment and recruitment.”
“Costs are suffering from falling growth and the strengthening dollar, which puts up the price of imports,” she said.
“This is hitting firms in emerging markets the hardest because their costs are higher and any dollar denominated debt is increasing. Many of these businesses are struggling to survive the market conditions.”
ACCA is among many commentators of the opinion that central banks will have to play a greater role in steering the world economy back towards growth – but Chua doubts many have the inclination or resources to complete the job.
Lacking confidence
“Governments have tried to tackle the problem by stabilising debt to GDP ratios,” she said. “Many have issued bonds to help accomplish their targets and few will want to upset the bond holders who have helped them, so the issue will be left to the central banks.
“We’re almost at a point of no return. Companies are in a place where they can see income dropping and they do not want to cut costs, rather than spend. If they stop recruiting, it may be difficult to encourage them to start again because business confidence will be so low.”
A positive, the survey found, was increasing confidence from businesses in Central and Eastern Europe, with Russia leading the way.
The research was conducted by ACCA with the Institute of Management Accountants, who spoke to 100 chief finance officers in businesses worldwide.
Download the full Global Economic Conditions Survey Report: Q1 2016
