• Fri. Mar 1st, 2024

Private Sector Profitability in Doubt: VISTAGE Argentina Business Confidence Index Reveals Concerns over Investment, Turnover and Workforce Plans

ByEditor

Feb 13, 2024
Business owners are gearing up for a year of increased revenue, but reduced profits.

New VISTAGE Argentina Business Confidence Index: Profitability of Private Sector in Doubt

The latest edition of the VISTAGE Argentina Business Confidence Index presents a concerning picture for the profitability of the private sector. This index, which has been conducted since 2006, includes insights from 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 terms of investment in fixed assets for next year, 47% believe that it 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 24% do not expect any changes. These results suggest that political-economic uncertainty is having a significant impact on business decisions.

Looking ahead to the next 12 months, 50% of survey participants predict that profitability will fall, while only 26% think it will remain the same and just under half (49%) anticipate an increase. These findings suggest that businesses are becoming increasingly cautious about their investments due to rising costs and political instability.

When asked about their workforce plans for next year, over half (58%) say they expect no changes. However, a quarter (25%) predict growth and almost one in five (17%) anticipate reductions. These findings suggest that companies are looking to maintain stability amidst economic uncertainty.

Guadalupe San Martín, CEO of Vistage Argentina said: “The results of this Index reflect political-economic uncertainty and its impact on businesses.” She added: “Increases in product prices and decreases in profitability are some of our biggest concerns.” Despite these challenges, San Martín remains optimistic: “Almost 60% of business leaders do not believe this will translate into a reduction in employment.”

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