He 65% of Argentine businessmen believe that the economy worsened in the last year, according to the Business Confidence Index for the first quarter of the year. Although there are optimism in it future under the government of Javier Milei, around the half of business owners estimate that profitability will fall and the investment in fixed assets, the total number of employees and the units sold will remain the same or decrease.
He Business Confidence Index is made by VISTAGE Argentina. For this one first quarter of 2024 They consulted 369 businessmen, Number Ones, CEOs, senior executives and business owners in Argentina.
For the majority of this universe of entrepreneurs, during the last 12 months (half Alberto Fernández government and half Javier Milei) They were bad for the country’s economy. Just 22% believe it has improved, 12% believe it has remained unchanged, and an overwhelming 65% say it has gotten worse.
He future seems encouraging for the majority of businessmen, but when it comes to giving an opinion on specific issues such as investment, prices, level of employment and profitability optimism moderates considerably.
He 68% I estimate that in the next 12 months the scene will improve, 16% will remain the same and the other 16% estimate a worsening. Now, when asked about the sales and billing the good ones expectations lower. 45% believe that more will be sold and 53% that turnover will increase.
Something similar happens when predicting the investment in fixed assets. Just 28% says that will increase52% that will remain the same and 20% that will decrease.
When asked about the status of the employee staffhe optimism was moderate. Only 33% believe it will increase. Meanwhile, 51% think it will remain the same.
Inflation, dollar and problems facing companies
Regarding inflation and the exchange rate, businessmen do not think that there will be major changes in the current direction. The Annual inflation in 2024 will be 160% and the exchange rate will be $1,419 per dollar.
Which are the problems faced by companies? More than half is distributed between economic uncertainty (32%) and the elderly costs to produce (29%), among which are energy, raw materials, salaries, etc. Then follow the financial issues (13%), drawbacks for useretain or train (12%), problems of very slow or very fast economic growth and 5% are other types of problems.
Source: Ambito
