The survey was conducted between July and September 2021, and measured “the opinions and humor” of 368 entrepreneurs, including CEOs, top executives and owners of large companies.
“Companies reflect that economic uncertainty and the climate of political polarization replicate within organizations both currently and in their future plans”, warned Guadalupe San Martín, CEO of Vistage Argentina, who carried out this quarterly survey.
The survey makes it possible to determine a “business confidence index”, with the aim of knowing the direction of the economy and investments in Argentina.
San Martín stressed that, despite the conflicts in the economic and political panorama, “Businessmen continue to believe in the country”Therefore, “the majority estimate that investment will increase in the next 12 months,” he said.
The Business Confidence Index measures several axes, such as the behavior of the economy, the profitability of companies, sales levels, investment in fixed assets, the number of employees stipulated for the next 12 months and the main problems facing the companies. companies today, among other issues.
What is the economic scenario for 2021?
When asked how they think the economy will behave in the next 12 months49% say it will get worse; 23%, which will improve; and 28%, which will be the same.
According to the cost effectiveness that companies expect to obtain within a year, 24% estimate that it will increase; 34%, which will decrease; and 42%, which will remain the same.
Regarding the estimated turnover for the next 12 months, according to the Vistage Argentina survey, 63% indicate that it will increase. While for 27% it will remain the same, and will decrease for the remaining 10% of the entrepreneurs who participated.
However, when asked about the volume in units sold in the next twelve months, 50% consider that it will increase; 34% believe that it will be the same as the current one; and only 16% estimate that it will decrease.
Investments, bet on Argentina?
Refering to investment in fixed assets for the next 12 months, 34% state that it will increase, while 15% consider that it will decrease; and 51%, which will remain as it is today.
Likewise, regarding the number of employees of the company in the next 12 months, 52% indicate that the workforce will be the same; 40%, which will be higher; and 8%, which will be reduced.
The quarterly survey of the business confidence index also compared how the situation was a year ago. Despite the fact that Argentina was still in the midst of a pandemic, 50% of the businessmen consulted consider that the economy worsened; 29% indicate that it improved; and 21%, that it was maintained.
The conflicts that concern Argentine businessmen: dollar, costs and profitability
The biggest problem companies face today, the report says, is economic uncertainty. For 42% of those surveyed, concerns about the local or international economy, public finances, etc. stand out. Another 21% respond that the biggest problem is related to personnel (finding, hiring, retaining, training).
On the other hand, 15% consider that the concerns are the higher costs of energy, raw materials, salaries, etc .; while 10% value that they are financial issues, such as cash flow and profitability.
Finally, 8% say that it is due to growth that is too slow or too fast, and the remaining 4% report other types of problems.
Finally, when asked about the annual inflation estimates for 2021, the businessmen responded that they believe it will be 53%. Along these lines, they maintain the forecasts of an exchange rate of $ 151 per dollar.
Source From: Ambito
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