Saturday , December 7 2019
Home / argentina / 2019 would be another year with a drop in private consumption

2019 would be another year with a drop in private consumption

A report by economic consultancy Ecolatina estimates that the decline will be about -1.4%.

A consultancy report Ecolatina estimated that in 2019 the consumption will have another year without recovery. His economists warn that the drop will be -1.4% year-on-year (in 2018 it was -1.5%).

However, analysts have considered that there will be particular dynamics and changes of trends within this autumn, points out Financial Area.

Read more: ► Super sales and purchases fell in November

Mass consumption

Differently from what happened in previous years, when mass consumption was the variable that adjusted in a context of lower disposable income, they estimate that this is the component of consumption that less contracts this year, highlights

"This responds to the fact that household spending on these goods is less sensitive to changes in income and / or prices, while it is not vitally important to buy a new vehicle or to change appliances, items that will be felt in the crisis," he said. they argued.

In Ecolatina, estimates a decline of around 1% year-on-year in mass consumption – a decline less than the total of private consumption – which would begin to show positive interannual changes from the third quarter, "when the purchasing power of wages will experience partial improvements compared to 2018".

Read more: ► Predict another year with falling sales and household consumption

Durable goods, the hardest hit

However, unlike previous years, when the exchange rate lag, the easing of the trade regime and the reduction of taxes on some products stimulated an expansion of consumption in durable goods,the strong devaluation and the high cost of financing, reflect the expense in this type of merchandise"

Source link