Business owners are gearing up for a year of increased revenue, but reduced profits.

The latest edition of the VISTAGE Argentina Business Confidence Index presents an unfavorable outlook for the private sector’s profitability. Since 2006, this index has been prepared and includes data from 355 CEOs, senior executives, and business owners who provided their opinions on the current economic scenario in Argentina and the future of their organizations.

The study found that 83% of participants considered the economy had worsened compared to a year ago, while only 13% believed it remained unchanged. Looking ahead to the next 12 months, 50% thought that the situation would get worse, with only 37% believing it would improve. These findings suggest that political-economic uncertainty is having a significant impact on the private sector’s profitability.

Regarding investment in fixed assets for next year, 47% believe that it will remain the same, with only 22% indicating that it will increase. With high inflation involved, only 44% expect their company’s turnover to grow in the next 12 months, with more than half expecting a decrease or no changes at all. These results indicate that businesses are hesitant to invest due to uncertainty about future economic conditions.

Furthermore, almost two-thirds of survey participants (61%) predicted that prices of products and services they sell would increase in the next year. This suggests that businesses are facing challenges in keeping up with rising costs and maintaining profitability in these uncertain times.

Despite these challenges, over half of survey participants (58%) expect their employee workforce to remain unchanged next year. Only one-fourth predict growth, while just over a tenth anticipate a reduction in staffing levels. This suggests that businesses are trying to maintain stability amidst political-economic uncertainty.

In conclusion, the VISTAGE Argentina Business Confidence Index paints an unfavorable picture for private sector profitability due to political-economic uncertainty and rising costs associated with high inflation rates.

By Editor

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