Nails 10,000 SMEs closed during the first six months of the president’s administration Javier Milei due to the collapse of economic activity that occurred after the devaluation last December, which caused an increase in inflation and the deterioration of the purchasing power of salaries and pensions. sales from the retail sector plummeted 21.9% year-on-year in June.
“We warned the National Congress and the National Government that this was not the way out of Argentina’s problems, they did not listen, and now the damage is done,” the report states, which indicated that In the first 6 months of management, “10,000 SMEs closed”, if we compare the numbers from June with those from December.
Warning about the closure of “50 SMEs per day” during Javier Milei’s government
For the preparation of the registry, ENAC It also took as a source the data provided by the Secretariat of Job of the Nation of layoffs in the private sector; of the Central Bank (BCRA) that published the detail of the 350,000 less salaries and the information of the Federal Public Revenue Administration (AFIP).
The SME association expressed that “this libertarian experiment is destroying 50 SMEs per day in Argentina without a plan or economic direction that generates certainty about the business climate so that we can develop our economic activity in peace.”
He also maintains that because of “the recession ordered by the president Javier Milei and executed by the “indebted” Minister of Economy Luis Caputo”, Argentina went from being a country that “created 8,600 companies per year” to one that “destroys its equivalent in half the time.”
They then outlined a comparison with the policies implemented by the Brazilian government, with Lula da Silva at the head. “The situation has become serious for the men and women who produce and give work in Argentina. Brazil has the sixth largest economy in the world with 38 ministries. It deals with the absent or present State in the face of the SME genocide on going “It is clearly a sterile discussion in the face of the concrete example of progress of our main trading partner,” they denounced.
Regarding July 9, the business association considered that “Independence is achieved through the development of national SMEs that generate added value, private work with full labor rights and high purchasing power, replacing imports and consolidating the national industry to strengthen its own currency.” And they questioned: ““Destroying SMEs is destroying the basis of the national heritage to become a foreign colony again”
“Politics as a whole is at its darkest and most distant peak from the people. Believing to legislate for foreign capital or promoting refounding pacts and great economic alchemies can disguise poverty, unemployment and the fall in purchasing power, on the one hand,” but on the other hand what is sought is “to hide the real plundering of the public treasury that they are restructuring with the external debt and the entry through the RIGI to vulture funds and speculative to steal our natural resources again as 200 years ago.”
SME retail sales plummeted 21.9% year-on-year
The SME retail sales fell 21.9% annually in Juneat constant prices, and accumulated a fall of 17.2% in the first half of the year. While In the seasonally adjusted monthly comparison, they rose by 1.2%a slight improvement was expected due to Father’s Day and the payment of Christmas bonuses. However, the number of holidays in the month had an impact on the decline and no sector escaped the general trend.
The data was released by the Argentine Chamber of Medium-sized Enterprises (CAME) and noted that, “although businesses are more relieved by the greater stability in the lists they receive, The dynamics of sales that are not taking off are worrying”.
The biggest challenges identified by merchants are lack of salesrepresenting 57.6% of the responses, and high production and logistics costs, which constitute 23.4%. These two factors stand out as the most significant obstacles to the growth and stability of SME businesses.
Source: Ambito
