Survey: 8 out of 10 local businessmen are worried about macroeconomic volatility
The macroeconomic volatility – including GDP, unemployment and inflation – is the main concern of Argentine businessmen. According to 25th Annual PwC Global CEO Survey, 8 out of 10 local respondents listed this issue first, Y 6 out of 10 considered that instability would affect the attraction and retention of talent, as well as the production and sale of goods and services (51% and 57%, respectively).
Second, half of the executives showed concern about social inequity, 9 points more than the regional average and 32 points more than globally. In third place, 40% of senior executives expressed the same concern about health risks, in a pandemic context that still persists, and cyber risks, which were the main fears registered globally.
Regarding the impact of these eventual threats, inequality would affect the attraction and retention of talent (69%) and the sale of goods and services (64%). While cyber risks would limit innovation based on technology and processes (54%) and the production and sale of goods and services (43% and 46%), and health risks would impact the production and sale of goods and services (59% and 66%) and the attraction and retention of talent (56%).
“From the analysis of the responses of Argentine businessmen, we see a genuine concern for the retention of talent, given the prospects of macroeconomic volatility that have been sustained for years in the country. local human capital, so recognized and valued in the region and the world, it is today an asset that they seek to preserve in order to sustain positive expectations for their businesses”, pointed out Martín Barbafina, partner of PwC Argentina in charge of the Marketing and Communications area.
On the other hand, 8 out of 10 Argentine CEOs considered that the growth of the global economy will improve in 2022, thus consolidating the perception that emerged in the previous edition of the survey, when the most positive responses reached 74% and exceeded the results of 2020 by 60 points. The local trend is in tune with what was expressed by those interviewed globally, including those of Latin America, where entrepreneurs from Uruguay stood out (95%).
However, the Argentine vision reflected greater caution regarding the growth of the country’s economy: although the most optimistic continued to be the majority (46%), this proportion is below the regional (56%) and global average (75%). ).
“Argentine executives see the global perspective in a very similar way to what happens in the region and in the rest of the world. However, in the local perspective, a greater pessimism is observed, as a result of the economic challenges of the situation that must be resolved, including inflation, a fiscal path towards balance and agreements with the external sector”, reflected Santiago Mignone, partner in charge of PwC Argentina.
As for the most relevant countries for growth prospects, Argentine businessmen continued to choose Brazil (48%: 4 points more than in 2021 and 19 points more than in 2020), the United States (42%: 9 and 16 points more , respectively) and China (36%: 11 and 19 points higher). Other countries valued by local respondents were Chile (18%), Mexico (10%) and Uruguay, Paraguay and Russia (8% in all three cases).
PwC surveyed 4,446 CEOs in 89 countries between October and November 2021. More than 77% predicted that the global economy will improve, while only 15% expect conditions to deteriorate. This reflected optimism is one point higher than the 76% a year ago and 54 points higher than in 2020.