The latest edition of the VISTAGE Argentina Business Confidence Index paints a gloomy picture for the private sector’s profitability. This index, which has been prepared since 2006, included 355 businesspeople CEOs, senior executives and business owners in its fourth and last quarter of 2023 study.
The measurement found that 83% of participants considered that the economy had worsened compared to a year ago, while only 13% believed it remained unchanged. Looking ahead to the next 12 months, 50% predicted that the situation would get worse, with only 37% believing it would improve and 13% expecting no changes. These findings indicate a negative outlook for the future of businesses in Argentina.
Regarding investment in fixed assets for next year, 47% believe it will remain the same, while 31% indicated that it will decrease and only 22% said it will increase. With high inflation involved, only 44% expect their company’s turnover to grow in the next twelve months, with 32% predicting a decrease and only 24% not anticipating any changes. These results suggest that uncertainty is making it challenging for companies to plan for the future.
According to Guadalupe San Martín, CEO of Vistage Argentina, “The results of the Index convey the impact of political-economic uncertainty on businesses.” She added that “the decreases in profitability and increases in prices are some of the most worrying conclusions.” However, almost sixty percent of business leaders do not believe this will translate into a reduction in the workforce – a hopeful sign for job security.
In conclusion, this study highlights how political-economic instability is affecting businesses’ ability to plan and invest in their future growth. While there is concern about declining profitability and rising prices, many business owners are optimistic about maintaining their workforce size despite these challenges.