Global business confidence has weakened as companies face a more challenging operating environment, according to a World Economic Forum (WEF) survey published on January 8, 2026. The findings suggest that 2025 marked a turning point toward greater economic difficulty for many firms, particularly those operating across borders.
The survey, which gathered responses from senior executives worldwide, indicates that rising trade barriers, persistent global tariffs, and reduced international cooperation on climate and security issues have combined to make doing business more complex and costly.
Trade Barriers and Tariffs Weigh on Companies
Executives identified trade restrictions and tariff-related disruptions as major obstacles. Supply chains that had begun to stabilize after previous global shocks were again strained by policy uncertainty and shifting trade rules. For multinational firms, these barriers increased costs, delayed investment decisions, and reduced long-term planning visibility.
The WEF survey highlights that companies engaged in international trade were among the most affected, as cross-border operations faced higher compliance requirements and less predictable market access.
Geopolitical and Policy Uncertainty
Beyond trade, respondents pointed to weaker cooperation among governments, particularly in areas such as climate policy and global security. Fragmented regulatory approaches have made it harder for businesses to align sustainability strategies and manage geopolitical risks, further eroding confidence.
Executives noted that uncertainty — rather than demand alone — has become a dominant constraint on growth, influencing hiring plans, capital spending, and expansion strategies.
Few Signs of Improvement
According to the survey results, only a small share of firms reported that business conditions improved in 2025, underscoring the broad nature of the slowdown in confidence. While some sectors and regions showed resilience, the overall sentiment remained cautious, with many companies prioritizing risk management over expansion.
What the Findings Mean for 2026
The WEF survey suggests that global businesses enter 2026 in a defensive posture, focused on cost control, supply chain resilience, and market diversification. Analysts note that restoring confidence will likely depend on clearer trade policies, renewed international cooperation, and greater economic predictability.
Until those conditions improve, companies operating internationally are expected to continue navigating a tougher, more fragmented global business environment.
