Trade disruptions, inflation and geopolitical tensions are limiting global business prospects, according to a new survey of local chambers of commerce in more than 100 countries conducted by the International Chamber of Commerce (ICC).
In a press release shared by the Cyprus Chamber of Commerce and Industry (KEVE), the ICC said the findings of the ICC World Chambers Federation Chamber Pulse 2025 provide a snapshot of business expectations on key economic issues across economies that collectively represent 90% of global GDP.
While 89% of chambers rate the business environment as at least acceptable, the survey highlights significant regional disparities. Geopolitical tensions, inflation and tariffs top the list of global business obstacles, but the challenges differ sharply across regions.
Respondents in North America identified tariffs as their greatest difficulty (100%), while chambers in the Middle East and North Africa pointed to geopolitical tensions (62%). In South Asia, taxation dominates concerns (82%), while insecurity is the leading issue in Latin America and the Caribbean (70%).
Labour shortages were reported as most acute in North America (83%), Europe and Central Asia (70%), and East Asia and the Pacific (54%). Inflation remains a key worry, with price increases reported in more than 90% of countries surveyed.
For more than half of chambers, the current trading environment is placing a significant burden on businesses. Uncertainty has overtaken tariff changes as the leading trade challenge, with 74% of chambers citing it as a major obstacle.
Concerns about rising protectionism are particularly strong in East Asia and the Pacific, as well as in Latin America and the Caribbean. By contrast, chambers in the Middle East and North Africa are more optimistic, with 60% expecting trade conditions to stabilise.
Strategies and Adaptation
In response to uncertainty, businesses are prioritising market diversification (67%) and cost management (51%) over relocation (25%). Regional trade expansion is gaining momentum in Asia and Europe, while North American businesses are reassessing supply chains.
Despite the challenges, chambers remain generally optimistic (50%) about future business conditions. The Middle East and North Africa lead with the most positive outlook, while Latin America, the Caribbean, East Asia and the Pacific report growing pessimism, especially amid inflationary pressures.
The survey also shows that Artificial Intelligence (AI) adoption is gaining ground, with 22% of respondents reporting use, up from 16% in 2024. Asia is leading in both adoption and readiness, but a lack of expertise, data privacy concerns and unprepared company data are cited as barriers in other regions.
The International Chamber of Commerce (ICC) represents more than 45 million businesses in over 170 countries. Its members include many of the world’s leading companies, SMEs, business associations and local chambers of commerce. Cyprus is represented in the ICC through the Cyprus National Committee at KEVE, and all chambers in Cyprus are members of the ICC World Chambers Federation.
CNA