He tough fiscal package announced by the Minister of Economy, Luis Caputo, has support among small businessmen, that is, the majority of employers in the country. Despite admitting that It will cause a recession that could last more than a year, the package has a positive vision of more than 55% of the participants of a survey carried out by the Pyme Observatory Foundation (FOP).
“The vision of MSMEs ‘Plan Caputo’ is substantially positive, with a response balance of 26% of signatures in that sense,” says the report. Strictly speaking, the calculation is 55% who gave a positive opinion, 28% negative and 17% with no opinion.
The FOP is an entity sponsored by the Argentine Industrial Union (UIA), the Techint Group and the University of Bolognawhich has systematically carried out research on local companies for more than 30 years.
The vision of SMEs regarding the new economic measures was highlighted among 734 companies micro (0-9 employed), small (10-49 employed) and medium (50-249 employed).
The sectors of these companies are Agriculture, livestock, forestry, fishing and mining, Commerce, Construction, Manufacturing industry, and Professional and production services. The survey was carried out national level between December 19 to 26, 2023.
According to the report, 32% of micro businesses consider that the government measures are positive and 19% very positive; for the small ones are 39% and 17% and for large companies it is 41% and 15% respectively.
Between micro and large companies, negative responses totaled 30% and the medians 27%.
SMEs predict a recession in 2024
Nonetheless, 75% of companies believe that the Caputo Plan will unleash a recession. “It can be seen that recessionary perspectives are more widespread in SMEs in the construction (79%), manufacturing industry (78%) and commerce (78%). On the other hand, in services a recession is expected somewhat less (71%) while the most substantial difference in perspective is found in the agricultural and natural resources sector (56%),” the report indicates.
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Businessmen anticipate falling sales
The point is how long the recession could last: 32% anticipate that it will last for 6 months, 25% for one year and 14% for two years. The magnitude of the drop in sales in real terms during the first half of 2024 would be 30% or more for 58% of said companies
Source: Ambito
