The commercial activity The crisis is not finding a bottom and is causing concern, both in the north of Argentina and in the south of the country. In Salta they warn that “if there is no recovery, there will be layoffs”; in Santiago del Estero “there are price changes twice a week and nobody buys”; and in Río Negro it is noted that there are business closures, while informality grows. The data arise in a very complicated context that was reflected in the data released by the Argentine Chamber of Commerce (CAC), which warned that consumption fell again in June.
In Jumpthe scenario is highly complex and he recognized it Miriam Guzmantreasurer of the Chamber of Small and Medium-sized Businesses of that province, who reported that since January 20% of small and medium-sized businesses had to close due to the drop in sales, which resulted in a “significant loss of jobs.” Regarding the measures adopted by the Government to cushion the effects of the crisis, she pointed out that “‘a priori’ none of its decisions benefited SMEs because all the announcements were based on tax exemptions for multinationals and foreign companies, while for national companies the Country Tax was raised by 12.5%.”
The union secretary of the Salta Trade Employees Union, Angel Ortizagreed with this analysis and added that the lost jobs cannot be recovered because there are no new job offers and that the existing ones are already beginning to be at risk because the business and commercial fabric continues to weaken due to the loss of sales and increased costs. “We know, according to what has been expressed by the Chamber of Commerce and other organizations such as Comerciantes Unidos, that between 200 and 300 small SMEs have had to close recently,” he indicated.
In Jujuythe situation is similar. Alejandro Bustamante, The Chamber of Commerce’s head said that they are working to keep the doors of businesses open. “We are going through a complex situation, we have been experiencing a major recession accompanied by an excessive increase in taxes and services, so if there is no prompt reactivation, we will be in more trouble,” he described. And in relation to the most affected commercial sectors, he warned that “in general, there is a consensus on a year-on-year drop of between 25% and 30%, it is a significant drop. In the meantime, we are all maintaining activity while waiting for an upturn.” This recovery, although short, could come from sales for Children’s Day on August 18.
Bustamante, from the board of directors of the Jujuy Chamber of Commerce, considered that it is urgent to recover the purchasing power of employees. “It is necessary to adjust salaries to inflation rates since people have lost so much that they buy only what is essential and avoid other expenses; we need workers to recover their salaries so that commerce can move forward,” he said.
In Santiago del Estero yellow alerts were also triggered. Carolina Ferreyra, The manager of the provincial Chamber of Commerce said that the sector is very concerned. “We know the reality and unfortunately, many have had to lay off staff and reduce their work hours. There are no sales, no clients and therefore, there is no one to sell to and the situation is complicated,” he said. He stressed that the only encouraging data is that inflationary pressure has decreased but, in the same way, “there are price changes twice a week.”
These data from the provinces are what fed the latest report of the Argentine Chamber of Commerce (CAC), which noted that Consumption in June fell by almost 10% annually and just over 3% compared to May. Also, during the first semester, Household consumption fell by 5.3% year-on-year, Recreation and clothing were the sectors with the most significant declines. Among the reasons, the CAC pointed out that it was due to the drop in household income during that period. Clothing and footwear were the sectors with the greatest decline, in the order of 26% year-on-year, although expenditure on recreation and culture fell by 33.7%. “Both declines are due to the postponement of non-essential consumption due to a drop in real household income,” said the chamber.
What is happening with commercial activity in the south of the country?
In Black River commercial activity is not taking off either. Jose Luis Bunter, The president of the Chamber of Commerce of Cipolletti, one of the largest cities in the province, said that the situation is critical. “Many businesses have closed and the serious thing is that they have moved to informality, which affects competition and creates gaps in regulation and the capacity of state agencies to carry out adequate monitoring,” he said. For the businessman, commercial activity was also affected by a significant increase in operating costs, rents and rates for basic services, such as electricity and gas. “This combination of factors has led many to bankruptcy or the temporary closure of their businesses,” he warned.
Further south, Miriam Giorgiaof the Economic Federation of Santa Cruzindicated that the difficulties faced by local merchants are equivalent to those of a recession. “We are not doing well because there is a drop in consumption that has been taking place for a while and is leading to the closure of numerous businesses, changes in line of business and staff reductions,” he explained. “Although merchants always have an imprint to go out and row all the time, today we are rowing in dulce de leche, but in pastry,” he said. “We are always trying to emerge with our own actions; as good entrepreneurs, we want to get ahead, and not stay with the complaint, but fight it,” he said.
Source: Ambito
