The latest edition of the VISTAGE Argentina Business Confidence Index presents a concerning outlook for the profitability of the private sector in the country. This index has been prepared since 2006, and the study corresponding to the fourth and last quarter of 2023 included 355 businesspeople CEOs, senior executives, and business owners who gave their opinions on the current economic scenario in Argentina and the future of their organizations.
In this measurement, 83% 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% believed that the situation would get worse, 37% expected it to be better, and only 13% thought there would be no changes. These results indicate a significant challenge for businesses operating in Argentina.
Moreover, according to the study, investment in fixed assets for next year remains uncertain. While 47% believe it will remain unchanged, 31% expect it to decrease and only 22% anticipate an increase. With high inflation involved, many companies are concerned about their ability to maintain or grow their turnover in the next year. Only 44% believe their company’s turnover will increase in the next twelve months, while more than half (56%) expect a decrease or no change at all.
The impact of political-economic uncertainty is evident in these results as well. According to Guadalupe San Martín, CEO of Vistage Argentina: “The increases in prices of products and services and decreases in profitability are some of the most concerning conclusions.” However, almost six out of ten business leaders do not expect this uncertainty to translate into reduced workforce levels due to layoffs or firing employees.
Overall, these findings suggest that businesses operating in Argentina may face significant challenges when it comes to maintaining profitability over time due to economic factors such as inflation and market fluctuations.
In conclusion, businesses operating in Argentina may face significant challenges when it comes to maintaining profitability over time due to economic factors such as inflation and market fluctuations. Despite these challenges, however, many business leaders remain optimistic about their ability to weather them through careful planning and strategic decision-making.
As a journalist covering this topic closely