Possible answer:

The present economic environment is complex and dynamic, influenced by various factors such as global trade tensions, technological changes, political instability, and pandemic-related disruptions. Whether this environment is favourable to business depends on several factors, which we can examine under the following headings:

Macroeconomic conditions:

- Overall, the world economy is recovering from the COVID-19 shock, but the pace and pattern of recovery vary across regions and sectors.
- Some countries have experienced strong rebound in output and employment, while others are still struggling with low demand, supply bottlenecks, inflationary pressures, and debt burdens.
- Monetary policy and fiscal stimulus measures have supported liquidity and investment, but they also pose risks of inflation, interest rate hikes, and debt sustainability.
- The outlook for trade and investment flows is uncertain, as some countries are adopting protectionist measures, while others are seeking to enhance regional integration and digital connectivity.
- Therefore, businesses need to monitor and adapt to these macroeconomic conditions, as they affect their revenue, costs, financing, and competitiveness.

Sectoral opportunities and challenges:

- Different sectors have been affected differently by the pandemic and the related changes in consumer behavior, work patterns, and technology adoption.
- Some sectors, such as e-commerce, healthcare, renewable energy, and digital services, have grown rapidly and attracted more investment and innovation.
- Other sectors, such as tourism, hospitality, transportation, and traditional retail, have suffered significant losses and may face structural changes in demand and supply.
- The labour market has also undergone some shifts, with some jobs disappearing or changing, while others emerging or transforming.
- Therefore, businesses need to assess which sectors offer growth potential, which ones pose risks or uncertainties, and which ones need to be restructured or diversified.

Regulatory and policy environment:

- The legal and institutional framework in which businesses operate can either facilitate or hinder their activities and outcomes.
- Some governments have adopted pro-business policies, such as tax incentives, deregulation, and investment promotion, to attract and retain firms and investors.
- Other governments have increased regulations, taxes, and social obligations, in response to public demands for more accountability, sustainability, and equity.
- The degree of political stability, corruption, and rule of law also affects business confidence and risk perception.
- Therefore, businesses need to understand and comply with the relevant laws and regulations, engage with policymakers and stakeholders, and contribute to the social and environmental goals of the society.

In conclusion, the present economic environment is neither entirely favourable nor entirely unfavourable to business, as it depends on various factors that interact and change over time. Businesses need to be agile, innovative, and responsible, in order to navigate the challenges and seize the opportunities in this environment.