As 2024, the first year of the Milei era, closes, the business expectations they are changing. With the year coming to an end, most are already beginning to take stock and project what the next year could bring. According to a new private report, 80% of Argentine businessmen think that the economy will be better in the next 12 months. Of the 352 businessmen consulted, 33% assured that the economy performed better than a year ago.
The report responds to a study carried out by Vistage Argentina, which highlighted that The business confidence index stood at 113 points, a maximum since 2021 when the survey was carried out.
Another fact worth highlighting is that of the entrepreneurs surveyed, 66% trust that the volume in units of their company will increase in the next 12 months while 33% consider that its profitability will increase in the next 12 months. “The conclusions of this new edition of the Index are aligned with the hope for improvement that lies in the Argentine business community. However, one fact emerged that must be taken into account: for the first time, the economic uncertainty is no longer the first concern in organizations. The rise in costs is today the main problem that businessmen see,” said specialist Guadalupe San Martín.
Asked about their assessments of the Argentine economy in the last year, 46% indicated that the situation worsened; 37%, who improved; and 17% consider that it remained unchanged. Meanwhile, according to the Business Confidence Index for the third quarter of 2024, 80% estimated that in the next twelve months, the scenario will improve; 13% indicated that there will be no changes; and 7% considered that it will get worse.
Regarding investment in fixed assets for the next twelve months, 49% responded that it will increase, 44% estimated that it will remain the same, and 7%, which will decrease. Likewise, 71% estimate that their company’s turnover will increase in the next year, while 21% believe it will remain the same and 8% predict a decrease.
The volume in units sold was another of the points consulted. In the next twelve months, 66% indicated that it will increase, 23% indicated that it will remain unchanged; and 11% stated that it will decrease. On the other hand, regarding the profitability of their companies in the next year, 36% of businessmen thought that it will remain the same; while for 33% it will increase and for 31%, it will decrease.
As for the cobehavior of prices of products/services that their companies market, 43% of those consulted considered that there will be no changes for next year. For another 42%, prices will increase; and for 15%, they will decrease.
Almost half of business owners expect higher costs, but their staff will increase
Regarding the status of the employee workforce for the next twelve months, 48% indicated that it will increasewhile 43% noted that it will be the same and 9% noted that it could be reduced.
Regarding the most important problems that companies face today, 25% of businessmen considered that are the biggest costs (energy, raw materials, salaries, etc.), followed by economic uncertainty (24%); other inconveniences related to finding, hiring, retaining or training staff (19%); financial issues (14%); problems with growth too slow or too fast (14%); or other types of problems (4%).
What inflation do businessmen expect?
Finally, businessmen estimated that annual inflation in 2024 will be 100% (24 percentage points less than what they anticipated in the Business Confidence Index for the second quarter of the year) and stated that The exchange rate will be at $1,152, 223 pesos less than what is stipulated in the previous index.
Source: Ambito
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