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

Unfavorable Outlook for Profitability in the Private Sector: VISTAGE Argentina Business Confidence Index Reveals Concern among Business Leaders

A recent study by VISTAGE Argentina has revealed an unfavorable scenario for the profitability of the private sector. The latest edition of the VISTAGE Argentina Business Confidence Index, which has been conducted since 2006, included 355 businesspeople, CEOs, senior executives and business owners who provided their opinions on the current economic situation in Argentina and the future of their organizations.

In this measurement, 83% of participants 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 be better, and 13% believed there would be no changes. These findings indicate that there is a growing concern among business leaders about the economic outlook in Argentina.

Furthermore, regarding investment in fixed assets for next year, 47% believe that it will remain unchanged, while 31% expect it to decrease and only 22% predict an increase. With high inflation involved, only 44% of participants believe that their company’s turnover will grow in the next 12 months. On the other hand, a significant number (32%) expect a decrease in turnover with no changes anticipated by (24%) participants.

Profitability is another area of concern for business leaders as over half (55%) of them predicted that it would fall in the next twelve months. Only (26%) expected it to remain unchanged while (19%) anticipated an increase in profitability levels. Meanwhile, paying attention to how product or service prices will behave in the next twelve months showed that approximately (61%) predict an increase while (21%) expect no change and only (17%) anticipate a decrease in prices.

Finally, concerning employee workforce management plans for next year; approximately (58%) said they would remain unchanged while only (25%) predicted growth and only (17%) indicated possible reductions.

According to Guadalupe San Martín CEO Vistage Argentina Business Confidence Index highlights political-economic uncertainty’s impact on businesses’ profitability levels and revenue expectations.

Overall, these results suggest that businesses are facing significant challenges in navigating economic conditions in Argentina.

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