Results of a recent global survey show Argentina’s economy might finally be taking a positive turn. But did all of us make the list? There are two sides to every story, and economic predictions don’t appear to be an exception.
KPGM has recently conducted the survey Global CEO Outlook and integrated, for the first time in history, Argentine CEOs. Results of the survey show that Argentina’s CEOS see profit looming over the horizon for the country’s economy.
Out of the directors surveyed by KPMG, 77 percent are certain that their companies, along with Argentina’s economy, will grow in the year to come. Ricardo De Dellis, Executive partner director of KPMG in Argentina, reported “most economists … are looking at an Argentina that will grow 2.5 percent this year and 3 percent next year”.
De Dellis’ claim can be easily backed up with reports presented by Econométrica, Empiria, and LCG. These three economic consultants predict a growth in Argentina’s economy of 2.5, 2.2 and 3 percent respectively.
But what’s the situation look like from point of view of the employee and small businesses?
For the sake of context, it’s important to note that over 1500 businesses had to shut down in 2016. Therefore, while a clear increase in the economy has been predicted by economists and company executives, small businesses may not feel to be a part of the picture just yet.
Workers don’t seem to be on the best of tracks either. A noteworthy question posed by KPGM’s survey was the job percentage increase CEOs planned for their companies. While business leaders expect to make progress, reports indicate that they plan to increase employment openings by a mere 5 percent.
The last quarter of 2016 closed with an unemployment rate of 7.6 percent, according to Indec. A number which is equivalent to 1.5 million people being unemployed.
Despite these negative figures, we cannot totally write off the predictions coming from CEOs. Three of the strongest consultant firms in Argentina, carefully selected by Focus Economics, also predicted an increase in Argentina’s economy.
With numbers like these, one can’t help but ask whether “better” really is better for everyone as Argentina continues on the path of economic recovery.