Accountancy linked to 'higher GDP and improved living standards'
The accountancy profession contributes over half a trillion US dollars to the global economy each year and is linked to higher GDP and improved living standards, according to a report by the International Federation of Accountants (IFAC).
The research found that countries with a higher share of accountants in employment have both a higher per capita GDP and UN Human Development Index, which measures life expectancy, income and schooling.
IFAC said the report, Nexus 2: The Accountancy Profession – A global value add, shows a correlation between countries with strong accountancy professions and improved living standards for the first time.
The global accountancy profession contributes an estimated $575 billion (£378 billion) gross value added (GVA) to the world’s economy annually, with countries in North America, Europe and Asia at the top of the list.
Accountants – take a bow. Your work brings more than half a trillion $$ to global economy pic.twitter.com/fNmj2uO82V— IFAC (@IFAC_Update) November 12, 2015
IFAC Chief Executive Officer Fayez Choudhury said that countries that have a robust accountancy profession that tracks the flow of money in government, within business and between organisations, “improves transparency and accountability” and enhances the local economy.
He said: “This report highlights the scale of the profession’s importance to the global economy. It confirms a particularly exciting economic opportunity in the rapidly developing Asian and South American regions.
“The findings verify the profound importance of IFAC’s mission—and that of the global profession—to help strengthen accountancy capacity in developing countries, where accountants have a significant role to play in strengthening the institutions and architecture that will improve peoples’ lives.”
IFAC launched the report at the Singapore Accountancy Convention on 12 November 2015. The study was conducted by the independent Centre for Economics and Business Research.