Like every year, in IDEA the survey on Executive Expectations that this year was marked by negative aspects: 80% think that the dollar will continue to rise. However, there was also room for optimism, since he 40% believe that falling sales bottomed out so they expect a strong recovery although they recognize that the crisis was greater than expected.
38% estimate that their company’s sales will increase a year from now but 42% estimate that they will fall. In the survey, which was presented via zoom by Eduardo D´Alessio, President of D´Alessio IROL, and Luis Secco, director of Economic Perspectives, 89% saw in the first semester that the country’s situation was moderately worse (11%) and much worse (78%).
This includes 94% of the service sector and 84% of the industry.
However, these figures fall in expectations: 68% see that the situation will be moderately (24%) or much worse (44%). In this case, the negative view corresponds to 71% of services and 65% of industry.
But the positive outlook increases to a 18% if it is added that the situation will be better (1%) and moderately better (17%). Services represent 17% here and industry, 19%.
Among the positive aspects of the semester are: agreement with creditors; reopening of industries and shops; increased production, and assistance to segments of the population through the IFE.
As negatives are listed: the pandemic and its consequences; international context; absence of an economic plan; lack of dollars; loss of purchasing power; fiscal deficit and that there is no confidence to attract investment.
Also the survey determined 17% estimates that investments will increase in the coming months and 55% think they will fall and indicated that “institutional stability” is the most important factor when it comes to attracting investment.
In addition, many indicated that the prices only managed to cover the increase in labor but that the rest of the costs of the companies could not be covered.
Too, 80% considered that exports will not improve rather they will remain or worsen in the short term.
Regarding employment, 42% of those consulted estimated that there will be a fall and only 17% calculated that it will increase, especially in the SME sector. For 60%, teleworking a few days a week will be common after the quarantine experience.
This led to the issue of new normal. While many executives believe that telecommuting is a modality that will become widespread at some point, medium-sized companies were the ones that expressed the greatest difficulties for this change.
Refering to cost effectiveness, he 64% estimated that it will fall, while 16% considered that it will increase.
The executives pointed out that the payment chain has reached a “turning point” and that they perceive that there will be a lesser “extension” of it. However, they continue to consider that the payment chain continues to have problems, especially with the coronavirus crisis.
On this issue, 67% said they had extended the collection deadlines and 40% estimated that they will have to extend them again in the future.