Retail market report, Buenos Aires, 2024

The decrease in consumption in Argentina since the end of 2023 is so significant that it is only comparable to the declines recorded after the onset of COVID-19 and the one that followed the 2001 crisis. After the pandemic, from the end of 2020 through 2021 and part of 2022, private consumption experienced a vigorous rebound, returning to pre-2018 crisis levels, only to stagnate in 2023. This recovery occurred even in the context of a widespread and almost uninterrupted decline in household incomes, such that just by the end of last year registered workers had lost more than 20% of their purchasing power, while informal workers had lost over 40%, which was exacerbated by the devaluation of the official exchange rate in December.

However, the Buenos Aires retail market has not shown any signs of impact as of yet, as in the first half of 2024 its vacancy rate continued to decrease from already historically low levels, and prices remained in line with the average of 2023, not far below those recorded in 2019.