Global Overview of Business Dynamics

Delivery

This report comes in PPT.

Key findings

Global trade shifts towards new directions and regional blocks

Geopolitical tensions are accelerating the regionalisation of global trade. US tariff policy has prompted partners to diversify exposure, fast-track free trade agreements and redirect supply chains towards alternative corridors. Global container port traffic fell by 1% in 2025, signalling reduced long-haul flows. Cross-border trade is increasingly shaped by resilience considerations rather than pure cost-efficiency.

Capital flows become politically aligned

Government intervention is redefining where and how capital is deployed. In 2025, subsidies, tax incentives and industrial strategies directed investment towards AI, automation and critical minerals. Manufacturing geography selection increasingly reflects geopolitical alignment and risk mitigation, favouring trusted and geographically proximate markets over traditional low-cost destinations.

Emerging economies gain growth leadership

Incremental business expansion is shifting towards emerging markets. Economies in Asia Pacific and Latin America are attracting new company formation and investment as developed markets slow. The Philippines, India and Vietnam posted business registration growth above 5% in 2025, while Brazil and Argentina climbed four places in global competitiveness rankings amid improving macro stability.

Talent concentration becomes a strategic advantage

AI adoption and automation are reshaping global labour competition. Companies demand fewer but more specialised workers, particularly in science and engineering. While developed markets lead in higher education attainment, Asia Pacific’s scale and strong STEM (Science, Technology, Engineering and Mathematics) output make it home to roughly three quarters of global science and engineering graduates in 2025.