Consumer durables is a cataloguing of consumer goods that are not essential to be bought very often as they are fashioned in a way so as to last for an extended period of time. Profits in the consumer durables sector were most profoundly…
BMI View: Due to high inflation and the depreciation of the peso, Argentina's economic activity and
household consumption are expected to deteriorate markedly in 2016. From 2017 onwards, however, BMI
believes that the Argentine retail market will start to see a marked upturn, benefiting from returning
investor confidence and an improving labour market.
Key Views And Developments
? After years of underinvestment due to macroeconomic instability, interventionist government policy and
a lack of access to capital markets, it is believed that investment will flock to key sectors including
agriculture, energy and real estate following the Argentine economy's rapid liberalisation under President
Mauricio Macri. Although real GDP will contract in 2016 as a result of falling consumption in light of
elevated inflation and layoffs, rapidly rising investment over the coming quarters will lead to a strong
rebound in 2017.