February 23, 2024 12:27 am
Business owners are gearing up for a year of increased revenue, but reduced profits.

The latest VISTAGE Argentina Business Confidence Index paints a grim picture for the profitability of the private sector in the country. This index, which has been conducted since 2006, includes opinions from 355 businesspeople CEOs, senior executives and business owners on the current economic scenario in Argentina and their organizations’ future prospects.

In the survey, 83% of respondents believe that the economy has worsened compared to a year ago, while 13% estimate that it remained unchanged and 4% believe that it improved. Looking ahead to the next 12 months, 50% expect the situation to deteriorate further, while only 37% see improvement and 13% expect no changes.

Regarding investment in fixed assets for next year, 47% believe it will remain unchanged, but 31% think it will decrease and only 22% predict an increase. With high inflation involved, just over half (44%) of respondents believe their company’s turnover will grow in the next year, while about one-third (32%) anticipate a decrease and nearly a quarter (24%) do not expect any changes at all.

Profitability is another area of concern for business leaders in Argentina. Almost two-thirds (55%) of survey participants predict that profitability will fall in the next year; however, nearly one-quarter (26%) expect it to remain unchanged and only one-tenth (19%) anticipate an increase. On the other hand, when considering how prices of products and services they sell may behave over the next year, more than half (61%) expect them to rise; around one-fifth (21%) think they will remain unchanged; while nearly one-eighth (17%) anticipate a decrease.

Finally

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