• Fri. Feb 23rd, 2024

Argentina’s Business Confidence Takes a Hit as Profitability Dips Amid Uncertainty

ByEditor

Feb 13, 2024
Business owners are gearing up for a year of increased revenue, but reduced profits.

According to the latest VISTAGE Argentina Business Confidence Index, the profitability of the private sector in Argentina is looking bleak. This index has been prepared since 2006 and includes opinions from 355 businesspeople, CEOs, senior executives and business owners.

In this measurement, 83% of participants considered that the economy had worsened compared to a year ago, while only 13% estimated that it remained unchanged. Looking ahead to the next 12 months, 50% thought that the situation would get worse, 37% believed it would be better and 13% thought there would be no changes.

The study also found that investment in fixed assets for next year will remain the same for 47%, decrease for 31%, and increase for only 22%. With high inflation involved, 44% expect their company’s turnover to grow in the next 12 months while only 24% do not expect any changes. These results convey the impact of political-economic uncertainty on Argentina’s private sector.

Guadalupe San Martín, CEO of Vistage Argentina explained that these results are concerning but not surprising given current conditions. “The decreases in profitability and increases in prices are some of our biggest concerns,” she said. However, almost half of survey participants do not believe that this will translate into a reduction in workforce size.

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