Business Confidence Hits New Low

Argentine business leaders are less confident in the country's economy than at any time since December, 2006, when the Argentine Business Leaders Association began measuring confidence levels.

A new survey, conducted between March and April, shows that 32% of managers and CEOs are confident about the business climate. A year ago, almost 48% of businessmen were confident about the economy.

Meanwhile, confidence in the legal system declined to 15.7% from 28.8% a year earlier. Businessmen often complain about how long it takes to resolve lawsuits. In most cases, judgements are not made for several years, forcing companies to spend exorbitant amounts of money on legal fees.

According to the survey, about 39% of the leaders said they plan to hire new workers in the next six months. That is down from 60% a year earlier.

In one positive sign, almost 38% of managers said they plan to make new investments over the next six months. But that figure is down from 59% a year ago.

Businessmen across all sectors of the economy say key reasons for the lack of confidence are constantly changing business regulations and government officials who treat much of the private sector with contempt.

Link: Argentine Business Leaders Association