Asia Pacific CFOs grow less pessimistic on economy

Deloitte has reported that Chief Financial Officers across Asia Pacific have become less pessimistic about the regional and global economy, based on a survey of 363 CFOs in 14 markets.

Net optimism about the Asia Pacific economy rose 21 percentage points to 26%, while net optimism about the global economy increased 24 percentage points to -3%. Confidence in respondents' own organisations was broadly unchanged at 39%, suggesting finance leaders remain focused on company-level risks and execution even as broader sentiment improves.

The survey also found a modest improvement in expectations for business performance over the next 12 months. About 63% of CFOs expect revenue growth, up from 60% in the previous survey, while 56% anticipate higher profits, up from 52%.

At the same time, respondents continued to rank geopolitical instability among the leading sources of disruption. A total of 57% said it was one of the biggest potential threats to their business over the coming year, although that was lower than in the previous survey as external conditions steadied.

Attention is also shifting toward growth priorities. The application of technology was identified by 38% of CFOs as a leading focus, while 37% pointed to innovation and new products.

"CFOs are becoming more confident in the regional and global economic outlook, but they are not losing sight of the risks affecting their own organisations. The findings point to a pragmatic shift: finance leaders are looking beyond short-term market noise and investing in the technology, resilience and agility needed to act when opportunities emerge," said Kok Yong Ho, Deloitte Asia Pacific's CFO Program Leader.

AI focus

Artificial intelligence featured strongly in the survey results, with 68% of respondents saying they had seen tangible value from their AI investments. Those reporting the strongest AI effects were also more optimistic about future profitability.

The report found that the opportunities and risks linked to AI are becoming more prominent for finance leaders. Technology-enabled resilience was the top organisational capability respondents wanted to strengthen, selected by 42% of CFOs.

Finance data, analytics and insights, along with liquidity and cash management, were each chosen by 31% of respondents. During periods of disruption, CFOs said the finance function adds the most value through liquidity and financial flexibility (45%), followed by cost control (41%) and forecasting and scenario analysis (39%).

"AI, data and automation-enabled capabilities, such as advanced scenario models, can help organisations prepare for critical events. But better information alone is not enough. Organisations also need the agility to respond quickly, turning insight into action rapidly when conditions change," Ho said.

Resilience spending

Nearly half of respondents, 46%, said resilience has become more important over the past 12 months as external uncertainty continues to affect business operations. This trend was especially visible in smaller economies, where companies can be more exposed to global trade shifts and supply-chain disruption.

That focus is affecting capital allocation. Among CFOs who said resilience had grown in importance, 21% said they would support resilience-related investment even when expected financial returns were significantly lower than for other projects, while a further 25% said they would do so even if returns were unclear.

The findings suggest finance leaders are broadening their approach from defensive risk management to a more balanced position that still accounts for uncertainty while supporting selective investment.

Uneven region

The wider regional picture remains mixed. Strong exports and investment linked to AI infrastructure have supported the overall growth outlook in Asia Pacific, but momentum differs between markets.

Business optimism in Mainland China and Japan moderated as both economies navigated domestic transitions, though sentiment remained positive. In other parts of Asia Pacific, easing inflation and AI-related investment helped support a steadier mood among respondents.

Even so, CFOs across the region continue to monitor a range of external pressures, including geopolitical instability, energy-price pressures, changing trade conditions, tighter global financial conditions and supply-chain disruption.

David Rumbens, Partner, Deloitte Access Economics, Deloitte Australia, pointed to risks that could weigh on the region despite stronger sentiment in parts of the market.

"While AI investment has supported strong growth in Asia Pacific, economic headwinds are building. Inflation, financial-market and trade risks could all jeopardise the region's momentum," said Rumbens.