Business Trends 2025: Key Insights Shaping The Future Of Global Markets

By investing in and providing smart, sustainable solutions, businesses play a crucial role in building accommodating and efficient urban environments. The global economy is starting the year in a steady position, affirms Eurasia Group’s Top Risks 2025 report, with inflation broadly under control and fears of a global recession mostly quelled. However, it’s unclear whether the economic landscape will change as new leaders usher in new policies. For example, if US President Trump follows through on his promises to impose high tariffs on China, Mexico and Canada, it could spark trade wars and cause inflation to spike.

The U.S. Chamber team carefully tracks the biggest global business trends – here are the ones you should be watching in 2023. Globally, the economic recovery is slowing in the wake of inflation spikes, debt crises, rising commodity prices and supply chain bottlenecks. “Livelihood crises” are increasing among lower-income households, a segment particularly hard-hit by higher prices and expensive debt. EU policymaking is complex and has important implications for policymakers, investors and companies operating in the region and the rest of the world. The pattern of emerging market (EM) growth is changing, with implications for investors and the global economy.

The urgency of this problem has increased in the last two years, both because the pandemic has stalled progress toward a green transition and countries have met the climate emergency with an inadequate response. For example, while 197 countries signed the Glasgow Climate Pact at the 2021 UN Climate Change Conference (COP26), their commitment is not expected to achieve the 1.5°C goal set by the 2016 Paris Climate Agreement. Easing inflation in response to more helpful supply conditions and weakening demand points to policy rate cuts in the US and eurozone from mid-2024, but these are forecast to be moderate in scope. An ongoing worldwide shift to digital finance accelerated in the covid-19 pandemic as individuals sought to avoid physical proximity and contact.

This transformative approach not only aligns with ecological goals but also propels businesses toward innovative, sustainable growth. This presents businesses with unique challenges and opportunities to innovate in the fields of housing, transportation, and infrastructure. Additionally, tailoring products, services, and employment practices to meet the varying needs of these diverse age groups. By proactively responding to demographic trends, businesses can unlock new markets, innovate in product development, and cultivate an inclusive workforce. To address deepening inequalities, we teach students how to drive productivity and inclusive growth.

Climate Change And Sustainability

More than half of those surveyed said their country was more divided today than in the past, and 65 percent said the lack of civility and mutual respect is the worst they have ever seen. The World Inequality Report 2022 indicates that global progress on inequality is mixed. According to the report, inequalities within countries have grown significantly over the last two decades – the gap between the average incomes of the top 10 percent and bottom 50 percent of individuals has nearly doubled. The gap between the average income of the richest 10 percent of countries has dropped from being approximately 50x higher to less than 40x higher than the poorest 50 percent of countries.

Key Initiatives In Climate Action

At INSEAD, we pay close attention to trends like these, as they help inform our agenda as a global business school. These trends, which present both serious risks and impactful opportunities for business, hold implications for our school’s activities in 2022. More broadly, global merchandise trade has continued to grow, belying claims that globalization is over (U.S. trade topped $7 trillion for the first time in 2022).

• Whether it’s optimizing procurement, redefining sales processes, or adopting composable architectures, today’s investments will set the foundation for tomorrow’s success.
• This strategic approach not only enhances individual financial growth but also supports the broader goal of fostering inclusive and sustainable economic development in emerging markets.
• Stay ahead of the most significant climate developments to inform your strategy with EIU’s award-winning forecasts, analysis and data.
• These chatbots often fall short in handling the complexity and variability of real-world human interactions.
• It also enables your company to proactively innovate and reduce risks, setting yourself up for success in a constantly changing future.

Please don’t refer to people as „top 1 percent of people“ and „bottom 50 percent“ – in what terms? Is a Professor of Economics and the Rausing Chaired Professor of Economic and Business Transformation at INSEAD. He was Dean of INSEAD from 2013 to 2023, making him the school’s longest serving dean to date. His expertise is in macroeconomics with a focus on monetary policy, fiscal policy and economic growth. For years, ESG reporting lacked rigor and consistency due to the absence of a single ESG accounting standard. It created difficulties for investors looking to compare companies’ commitments, and also fueled discontent about the greenwashing of sustainability investments.

Presciently, climate change, geopolitics and income and wealth inequality were all flagged by INSEAD faculty as the biggest risks to business. Multiple storms, hurricanes, wildfires, floods and droughts https://bio.site/OmvarisLimited ravaged almost all areas of the globe, while heatwaves across Asia and the Pacific highlighted the disproportionate impact of global warming on low- and lower-middle-income countries. Elections in over 60 countries led to power shifts, protests and an escalation of right-wing and populist movements, while war efforts intensified, and many parts of the world saw an uptick in social instability. The ten forces of change we have described will evolve over time and geopolitical complexity will accelerate.

The second most important societal issue identified by INSEAD faculty was income and wealth inequality, and this trend played out as expected. As the World Bank reported in December 2023, nearly 700 million people around the world live in extreme poverty, meaning they survive on less than $2.15 per day. In 2023, the poorest countries also remained worse off than before the Covid-19 pandemic. For instance, as of the second quarter of 2022, the US registered nearly 12 million job vacancies, leading to 2.1 job vacancies per one unemployed person in the country, compared with 1.3 in the same quarter of 2019. Lack of labour force might limit businesses’ ability to ensure operational stability and productivity growth, and pressure profitability, as companies are forced to raise employee rewards to attract and maintain workers.

The need to adapt to and mitigate the impact of extreme weather events and rising sea levels driven by climate change continues to reshape global business. Many nations, particularly several emerging markets, remain vulnerable to extreme climate events, which are projected to have a significant impact on GDP. And because the business case is clear, we believe that economically viable and competitive low-carbon energy, technologies, and supply chains technologies will continue to thrive.

For businesses, investors, and policymakers, understanding and adapting to this shift is crucial. Metaco Intelligence is a Singapore-based company that offers Zoth, an on-chain marketplace for global trade finance. It allows businesses in emerging markets to receive capital for growth and expansion. This way, Zoth connects lenders and businesses while providing mutualized real-world collateral through tokenization. The world’s energy system is radically changing as it moves away from fossil fuels and toward cleaner, renewable energy sources.

Many companies need to enhance their ability to anticipate and manage the impact of changing tariffs and policies driven by economic statecraft and prepare for price volatility. They should consider setting up differentiated organizations that can operate in a fragmented world. And leaders must understand the implications for their businesses of the race for leadership in technology and AI. Multiple storms, hurricanes, wildfires, floods and droughts ravaged almost all areas of the globe, while heatwaves across Asia and the Pacific highlighted the disproportionate impact of global warming on low- and lower-middle-income countries.

Uncertainty in the geopolitical future draws attention to the increasing complexity and volatility of the world environment. It is characterized by political upheavals, economic inequality, environmental disasters, and changing power dynamics. Innovating to zero solutions, in turn, urges companies to rethink their strategies and operations.

In a global environment marked by rising nationalism and great-power rivalry, countries are trying to gain economic advantages and reduce vulnerabilities. The role of the state in managing the economy is expanding and exacerbating pressure on public finances caused by demographic change and wider social challenges. Remote work became incredibly important during the pandemic and it remains a popular approach. Remote work models allow the business world to operate without relying on physical spaces.

While INSEAD faculty identified geopolitical crises (25 percent) and social instability (18 percent) as threats to business, it was hard to anticipate just how quickly these problems would escalate. The conflict in the Middle East was not – nor could it have been – factored into last year’s perceived trends. We also did not anticipate the acceleration of artificial intelligence (AI) issues that are now top-of-mind for business leaders.