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Private Sector Profitability in Argentina: A Concerning Outlook for Businesses Amid Political-Economic Uncertainty

ByEditor

Feb 13, 2024
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 a concerning picture for the profitability of the private sector in the country. This index, which has been conducted since 2006, included 355 businesspeople CEOs, senior executives and business owners who gave their opinions on the current economic scenario in Argentina and the future of their organizations.

In this measurement, 83% of respondents considered that the economy had worsened compared to a year ago, while 13% estimated that it remained unchanged. Looking ahead to the next 12 months, 50% believed that the situation would get worse, 37% thought it would improve, and 13% expected no changes. These findings suggest that political-economic uncertainty is having a significant impact on businesses in Argentina.

Moreover, according to the study, 47% of survey participants believe that investment in fixed assets for next year will remain the same, while 31% indicate that it will decrease and 22% state that it will increase. With high inflation involved, 44% consider that their company’s turnover will grow in the next 12 months, while 32% expect a decrease and

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