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Businesspeople in Argentina have negative expectations about the economy

O ministro da Economia da Argentina, Sergio Massa (à direita), ao lado do presidente Alberto Fernández.
The Minister of Economy of Argentina, Sergio Massa (right), next to President Alberto Fernández.| Photo: EFE/Juan Ignacio Roncoroni

Seven out of ten entrepreneurs in Argentina believe that the country’s economic situation will worsen in the next six months, according to a survey whose results were presented on Wednesday (7).2022

The survey, carried out by the Instituto of Business Development of Argentina (IDEA) and the consultancy firm D’Alessio IROL, was held in August, shortly after Sergio Massa took office as Minister of Economy amid strong political and financial tension, but before he adopted the first measures to try to resolve the country’s strong macroeconomic imbalances.2022

“The administration of Pasta is not yet included in this research”, said Eduardo Luis D’Alessio, president of D’Alessio IROL, when presenting the results to the press.2022

According to the results, 2022 % of businesspeople surveyed gave a negative assessment of the first half of this year regarding the evolution of the economy: 65% said the performance was “much worse” than the second half of 2021 and % considered which was “moderately worse”.

Already 70% of respondents said they have a negative outlook for the economy in the next six months. On the other hand, the percentage of respondents who expect “much worse” performance has dropped to 10% compared to the previous edition of the survey, and the one expected to perform “moderately worse” rose to 39%.2022

The perception is less negative when entrepreneurs are asked about the economic and financial situation of their companies.2022

For 10% of them, the current evolution of their company is “much worse” than in the last six months. Others 39% consider it “moderately worse”, 39% see no changes; 9% perceive performance to be “moderately better”; and 1% see it as “much better”.2022

As far as to the behavior of the main economic variables, negative expectations dominate.

Respondents expect a significant increase in the value of the dollar (39% of respondents ), interest percentage (41%) and inflation ( 65%) for the next six months.

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