Argentina

HSBC Navigator provides comprehensive insight into the now, next and how for business, representing the views of over 9,100 business decision-makers across 35 markets. This report gives an understanding of how businesses like yours can continue to grow now and in the future.

Money’s tight but export resurgence provides cheer
General elections in Argentina delivered the result that markets appear to have been expecting: a first-round win by Alberto Fernandez of the opposition Frente de Todos (FdT) coalition, with former President Cristina Fernandez de Kirchner elected vice president. They are set to be sworn in on 10 December. Now, all eyes will be on the cabinet and on initial comments regarding how the elected government is likely to interact and liaise with the IMF.

State of play

Optimism reigns on long-term growth prospects

Despite the continuing economic crisis at home, Argentina’s businesses are remarkably resilient in terms of their trade outlook. Almost three-quarters are projecting some sales growth in the short term and 27% are classed as high-growth firms, meaning they project growth of 15% or more in the next year. This is above the global average of 22% for high-growth firms.

Business sentiment has softened a little in the last year, with almost three in 10 businesses becoming more pessimistic about sales growth, but companies are proactively seeking to improve their prospects. Consistent with the global average, half of Argentinian companies expect to totally or substantially change their business in the next five years.

72 %

Encouragingly, 72% of Belgian companies expect sales to grow in the next year

Expectations for future business growth

Expect sales to grow – Next year*
74%
Grow by 15% or more – Next year
27%
Grow by 6-14% – Next year
29%
Grow by 5% or less – Next year
18%
Expect sales to shrink – Next year
14%
Stay the same – Next year
10%

Expect sales to grow* 84%
Expect sales to grow by 15% or more 38%
Expect sales to grow between 6-14% 25%
Expect sales to grow by 5% or less 21%
Expect sales to shrink 8%
Expect sales to shrink 4%

*This is the sum of grow by 5% or less, 6-14%, 15% or more.

What you need to know

  1. 1

    84% of companies project growth in the next five years, while 38% expect growth of more than 15%.

  2. 2

    More than four in five businesses believe international trade will drive innovation, new business opportunities and improved efficiency in the next half-decade.

  3. 3

    42% of companies are changing their supply chains to favour new markets and locations.

What your business can do

  • Seek out opportunities to enter new markets. 45% of Argentinian firms see this as a key driver for growth while 41% see it as an effective strategic response to potential business decline.
  • Analyse how you can enhance productivity to improve competitiveness. 45% of companies believe this is a powerful contributor to growth.