Given the deterioration of the Peruvian economy, the Business Confidence Index reached its lowest level in 2023 with a score of 94 points at the end of the third quarter, that is, 15 points less than three months ago. According to Vistage, the one in charge of carrying out the survey, the current result is similar to that of 2022, when the effects of the global recession began to be perceived; Furthermore, it reveals the concern that the Peruvian business community has for the future.
“To encourage the flow of investment, you must have confidence that it ensures long-term projections, and, if you are going to live in a situation of pure fluctuation as until now, it does not generate a scenario conducive to thinking about the future, which affects the consolidation of the virtuous circle of our economy“explains Jaime Aguirre, Chair of Vistage Perú.
No encouraging outlook
The lower confidence has been deteriorating because the majority of businessmen do not see an improvement in the country. 62.3% or 6 out of 10 business leaders consulted affirm that the economy has worsened, while only 28.3% indicate that economic activity has remained the same as three months ago.
Likewise, 53.8% of business owners predict that the national economy will remain the same and only a minority expects there to be a slight improvement or be worse than the third quarter.
In that sense, there is no greater commitment to the country in terms of investment. According to the survey, almost half of business owners (47.2%) have indicated that they do not plan to increase their investments in fixed assets, that is, they will maintain the capital they disbursed this year. On the other hand, only 28% have expressed that they do consider investing, but this would not occur in the short term, but rather in view of 2024 and as a result of a lower inflation which would have a positive impact on trade.
Sales and recruiting
Regarding the sales of your businesses, 56.6% of respondents expect their company’s turnover to increase in the next 12 months, although 35.8% consider that it will remain the same. Likewise, 56.6% predict that there will be a substantial improvement in their profitability. However, 26.4% expect it to remain the same and 17% predict a decrease.
Finally, 41% of business leaders maintain that their payrolls will remain the same and 35.8% expect to increase their human capital in their business. “These numbers are not as encouraging as those of the last quarter; however, they do provide a perspective on the commitment of Peruvian business leaders to their teams and optimism in a definitive recovery by 2024,” the report concludes.
Source: Larepublica
Alia is a professional author and journalist, working at 247 news agency. She writes on various topics from economy news to general interest pieces, providing readers with relevant and informative content. With years of experience, she brings a unique perspective and in-depth analysis to her work.
