Trade disorders, inflation and geopolitical tensions limit global business prospects, according to new research of local chambers in more than 100 countries from the International Chamber of Commerce (ICC).
According to a press release by the ICC, released by the CCC, the findings of the ICC World Chambers Federation Chamber Pulse 2025 are a summary of business perspectives on key economic issues in all economies collectively representing 90% of world GDP.
According to the survey, while 89% of the Chambers evaluate the business environment as at least acceptable, the regional gaps are large. Geopolitical tensions, inflation and duties are at the top of the list of global businesses for businesses, but the challenges vary significantly by region.
North America respondents face more difficulties with duties (100%), Middle East and North Africa with geopolitical tensions (62%), South Asia with taxation (82%) and Latin America and Caribbean with insecurity (70%).
Laboratory shortages are more intense in North America (83%), Europe and Central Asia (70%), East Asia and Pacific (54%). Inflation is still an important reason for concern, with price increases referring to over 90% of countries.
For more than half of the chambers involved in the survey, the current commercial environment has a significant burden on businesses. Uncertainty goes beyond tariff changes as the main trade challenge, with 74% of the Chambers reporting it as a major obstacle.
Concerns about growing protectionism are particularly strong in East Asia and Pacific, Latin America and the Caribbean, while the Middle East and North African Chambers are more optimistic, with 60% awaiting stabilization of trade conditions.
Strategies and prospects of adaptation
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In response to uncertainty, businesses prioritize market differentiation (67%) and cost management (51%) against relocation (25%). The regional development of trade is gaining ground in Asia and Europe, while North America businesses are reviewing supply chains.
Despite the challenges, the chambers are generally optimistic (50%) for future business conditions. The Middle East and North Africa lead with the most positive prospects, while Latin America and the Caribbean as well as East Asia and the Pacific report growing pessimism, especially amid inflationary pressures.
The findings of the survey also show that the use of artificial intelligence (AI) is gaining ground between businesses, using 22% of respondents, from 16% in 2024. Asia leads both in adoption and readiness, but lack of expertise, concerns about other countries.
The International Chamber of Commerce (ICC) is the institutional representative of more than 45 million companies in more than 170 countries. Its members include many of the world’s leading companies, media, business associations and local Chambers. The Cyprus Business Community is represented at the International Chamber of Commerce through the Cyprus National Commission based in KEVE while all the Chambers operating in Cyprus are members of the ICC World Chambers Federation.
Source: KYPE