Trade disruptions, inflation and geopolitical tensions are restricting 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).

A press release from the ICC, published by the Cyprus Chamber of Commerce and Industry (Keve), said that 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 per cent of global GDP.

The survey showed that while 89 per cent of chambers rated the business environment as at least acceptable, regional differences were substantial.

Geopolitical tensions, inflation and tariffs were at the top of the global list of obstacles for business, but challenges varied significantly across regions.

Respondents in North America highlighted tariffs as the main issue, with 100 per cent of chambers citing them as a difficulty.

In the Middle East and North Africa, 62 per cent pointed to geopolitical tensions as the biggest challenge.

In South Asia, 82 per cent identified taxation, while in Latin America and the Caribbean, 70 per cent considered insecurity to be the primary problem.

Labour shortages were found to be most acute in North America at 83 per cent, Europe and Central Asia at 70 per cent, and East Asia and the Pacific at 54 per cent.

Inflation continued to be a major concern, with price increases reported in more than 90 per cent of countries.

More than half of the chambers surveyed said that the current trade environment was placing a significant burden on businesses.

Uncertainty surpassed tariff changes as the main trade challenge, with 74 per cent of chambers identifying it as a serious obstacle.

Concerns about rising protectionism were particularly strong in East Asia and the Pacific, as well as Latin America and the Caribbean.

By contrast, chambers in the Middle East and North Africa were more optimistic, with 60 per cent expecting stabilisation in trade conditions.

In response to uncertainty, businesses are prioritising market diversification at 67 per cent and cost management at 51 per cent, rather than relocation at 25 per cent.

Regional trade development is gaining ground in Asia and Europe, while businesses in North America are re-examining supply chains.

Despite the challenges, chambers remain broadly optimistic, with 50 per cent expecting improved business conditions in the future.

The Middle East and North Africa lead in positive outlooks, while Latin America and the Caribbean, as well as East Asia and the Pacific, reported growing pessimism, particularly in the face of inflationary pressures.

The survey also found that the use of Artificial Intelligence is expanding among businesses, with 22 per cent of respondents reporting adoption, up from 16 per cent in 2024.

Asia is leading both in adoption and readiness, but progress elsewhere is hindered by a lack of expertise, concerns over data privacy, and unprepared corporate data.

The International Chamber of Commerce represents more than 45 million businesses in over 170 countries.

Its members include many of the world’s leading companies, small and medium-sized enterprises, business associations, and local chambers of commerce.

Cyprus’ business community is represented in the ICC through the Cyprus National Committee, which is based at the Keve, while all chambers operating in Cyprus are members of the ICC World Chambers Federation.