Consumption: businessmen warn that the tailwind is ending and inflation puts a brake

MDZ Radio spoke with the Institutional Director of the Argentine Chamber of Commerce and Services (CAC), Gonzalo De León, about this year's balance of the sector. He assured that a motorization of consumption can be made visible due to Inflation in products.

“We are a sector that is always very exposed to the ups and downs of the Argentine economy. This year somehow, they took advantage of the first months that were a little better than what people expected, this recovery after the pandemic was quite positive for the sector, but it must be taken into account that it brought a very low floor ”, he began explaining.  

De León assured that the sector was greatly affected by the restrictions and the drop in the level of activity during the strongest years of the pandemic. However, despite the fact that sales rebounded in the first stage of this year, he stated that these last few months "have been complicated."

The business leader assured that, although there is a motorization of consumption, this is partly due to the inflationary acceleration that, unfortunately, the country experienced during a good part of the year. "Economists call this 'the flight of money', before staying with the bills that lose purchasing power, they prefer to buy and this generates economic movement, but it is a short-term phenomenon. This generates more complications than benefits," he argued. 

In addition, he explained that this year an improvement in registered employment could be seen, however, the level of sales in the sector is not high. "We should give more private registered jobs to solve several of the problems that Argentina has," she said.

Finally, regarding the number of premises, the president of the CAC affirmed that it was stable, in addition he explained that a greater labor demand was perceived, although he warned that many times it is not possible to cover all the spaces that are available.

 

Finally, regarding the number of premises, the president of the CAC affirmed that it was stable, in addition he explained that a greater labor demand was perceived, although he warned that many times it is not possible to cover all the spaces that are available.