In Q1 2025, the global business environment encounters multiple challenges and opportunities.  Along with the market demands continue to change, companies must be agile in navigating import, export, and capex challenges to stay ahead of the competitive advantages.  

Businesses are challenged by disruptions in the import supply chain 

Disruptions in the import supply chain are still one of the biggest challenges for companies, especially for raw materials and components imported from certain regions, which have been affected by payment delays. Dun & Bradstreet’s Surveys show that less than 30% of U.S. companies are optimistic about their receivables. The key factors for companies to have reservations about the supply chain include: 

  • Freight rate increases: Since mid-2024, freight rates between China, the U.S. East and West Coasts, and Europe have increased by 15% to 22%.  

  • Global conflicts: By the end of 2024, the number of conflicts per million people was almost three times the level at the beginning of 2021.  

If these development tendencies are further strengthened, severe inflation and production costs may happen, especially for businesses that rely heavily on imports. In terms of export activity, export growth has slackened, mainly due to pessimistic situations on geopolitical and trade policy. Numerous companies say adapting to new regulatory standards and trade barriers poses challenges to their market access. 

Companies remain cautious about future investments 

In terms of capital expenditure, while the economic environment has improved, companies remain cautious about future investments. Although central banks in the world's major economies, except for Japan, have implemented interest rate cuts, companies believe that the cost of capital will remain elevated against the backdrop of heightened uncertainty. Companies remain alert about capital spending for three main reasons - economic uncertainty, headwinds for raising capital, and declined capacity utilization. Majority of companies currently plan to focus their capital expenditures on digital transformation and enhancing supply chain resilience to cope with possible future volatility. 

This article is provided by Dun & Bradstreet about the Global Business Optimism Index in 2025 Q1.  For further information regarding the report details, please visit through below link: 

https://www.dnb.com.hk/Resources_Center/article.asp?id=93&utm_source=AA&utm_medium=website&utm_campaign=mar-2025-GBOI&utm_id=2025content&utm_content=GBOI-article