Business Barometer Survey 20
In this edition of Business Barometer we find the outlook of businessmen and executives has improved to some degree since the previous quarter. The survey shows opinions improving with regard to the business environment, general economic conditions, and the climate for investment, security and employment. This improved outlook is also evident in the in the 12-month horizon, which also improved. Nonetheless, it is important to underline that most results still remain below year-end 2010 levels. Even though there was some improvement, we cannot yet speak of a definitive shift in trend in the general business outlook.
A similar scenario can be inferred for businesses, which are likely to hike production, output capacity and prices, and enjoy higher profitability, a situation that will offset some of the effects of the contraction in employment and salaries. In this light, only 22% of businesses report demand for products and services will decline, while 57% report normal demand. These results are similar to those presented in Business Barometer 19, but below those for year-end 2010.
The outlook for the exchange rate has undergone a considerable decline. Depreciation near the end of 2011 has executives doubting that the peso can bounce back to the zone around 12.5.
Moreover, the slowdown of the US economy, local insecurity and political differences are viewed as the greatest threats to sustained economic growth. Over the course of 2012, the political environment will become increasingly important to business and investment decisions. This Business Barometer edition also shows that businessmen and executives continue to give the thumbs up to the government's performance.