Global business challenges 2025 have become more visible as companies around the world struggle with weakening international cooperation. A recent survey published by the World Economic Forum (WEF) highlights how executives across multiple regions are facing increased difficulty in operating amid growing trade barriers, geopolitical tensions, and reduced collaboration on critical global issues.
According to the WEF’s Global Cooperation Barometer 2026, nearly half of surveyed executives believe that doing business became harder in 2025 compared to the previous year. The findings, released ahead of the upcoming Davos meeting, reflect a business environment shaped by uncertainty, shifting policies, and fragmented global coordination.
Survey Reveals Rising Pressure on Businesses
The online poll gathered responses from 799 senior executives across 81 economies, using a global panel curated by McKinsey. Around 43 percent of respondents said business conditions had worsened in 2025, while only 7 percent felt things had improved. The rest reported no major change or chose not to express a view.
These figures underline how global business challenges 2025 are being felt across industries and regions. Executives are navigating an environment where long-standing assumptions about open markets, smooth supply chains, and predictable regulations no longer hold true.
Trade Barriers and Policy Uncertainty
One of the most frequently cited obstacles was the rise in barriers to trade, talent mobility, and cross-border capital flows. Nearly four in ten executives said these factors directly made it harder to conduct business. In contrast, just 10 percent believed such barriers had eased.
The WEF pointed to a series of tariff announcements by the United States as a major contributor to uncertainty. In April, President Donald Trump introduced a new round of tariffs targeting several trade partners, sending shockwaves through global supply chains. Although some of these tariffs were later reduced through bilateral deals, the initial impact raised serious concerns about the future of free trade.
These developments are a core part of global business challenges 2025, forcing companies to rethink sourcing strategies, renegotiate contracts, and diversify markets to reduce exposure to sudden policy shifts.
Adapting to a Fragmented Trade Environment
Interestingly, the report also notes that six out of ten executives did not single out trade as their primary concern. This suggests that many firms have adapted by redesigning supply chains, investing in regional hubs, or strengthening local partnerships.
Such adjustments highlight the resilience of businesses, even as global business challenges 2025 intensify. Companies are becoming more agile, relying on scenario planning and flexible operations to cope with turbulence rather than waiting for global cooperation to improve.
Declining Cooperation on Security and Climate
Beyond trade, executives expressed growing concern over declining cooperation in peace and security. About 42 percent said collaboration in this area has deteriorated, compared to just 13 percent who saw improvement. Rising geopolitical tensions, ongoing conflicts, and strategic rivalries have created an unpredictable backdrop for long-term investment decisions.
Climate and natural resource cooperation also emerged as an area of concern. Nearly 29 percent of respondents felt collaboration on climate issues has become more difficult, while only 17 percent believed it had improved. This lack of alignment complicates sustainability goals, regulatory compliance, and long-term environmental planning for businesses.
These trends reinforce how global business challenges 2025 extend beyond economics, touching on security risks and environmental responsibilities that directly affect corporate strategy.
Technology and Talent in a Divided World
Although not the top concern, technology and talent mobility are also increasingly affected by reduced global cooperation. Restrictions on data flows, differing technology standards, and tighter immigration policies make it harder for companies to innovate and attract skilled professionals.
In an interconnected world, businesses rely on cross-border collaboration to stay competitive. The erosion of trust and coordination between major economies adds another layer to global business challenges 2025, particularly for multinational firms and startups with global ambitions.
What Lies Ahead for Global Businesses
The WEF survey paints a picture of a more complex and fragmented global landscape. While companies are finding ways to adapt, the overall direction points toward higher costs, greater uncertainty, and more strategic risk management.
Looking ahead, business leaders are likely to focus on resilience rather than efficiency alone. Diversification, regionalization, and stronger risk assessment frameworks will play a key role in navigating global business challenges 2025 and beyond.
The World Economic Forum’s findings serve as a warning that weakening global cooperation has real consequences for businesses worldwide. Trade tensions, security concerns, and stalled climate collaboration are reshaping how companies operate and plan for the future.
While many organizations have shown adaptability, sustained progress will depend on rebuilding trust and cooperation at the international level. Until then, global business challenges 2025 will continue to test the agility, creativity, and resilience of companies across the globe.
