Scotiabank anticipates a 5% growth for the retail sector in 2024.

Scotiabank has presented its economic projections for the retail sector in the year 2024, and it is expected to resume the path of growth with an estimated increase of 5%. This prediction goes hand in hand with the growth forecast for private consumption, which stands at 2.6% for this year. According to the bank's Weekly Report, a greater dynamism in sales is expected during the second half of the year, driven in part by a recovery effect after the sales decline experienced in the second half of 2023. It is projected that the supermarket segment will be one of the main drivers of this growth, due to a higher volume of products marketed rather than a price effect, as seen last year. Furthermore, it is anticipated that the improvement in private investment will generate an increase in employment and, consequently, in the population's incomes, which will boost the demand for products in department stores and home improvement. The opening of at least 300 new discount stores, mainly in provinces, is expected to strengthen the sector. Regarding sales by categories, an increase in demand for clothing, footwear, and durable goods, especially appliances, is expected. The home improvement sector is projected as a leader in the growth of the retail sector in 2024, driven by favorable prospects in the construction sector. It is important to note that Scotiabank's forecasts do not anticipate a deterioration in the population's incomes as occurred in 2023, which would allow for maintaining a stable level of demand for non-essential products. In summary, Scotiabank envisions a promising outlook for the retail sector in 2024, with growth projections driven by various factors such as economic recovery, increased employment, and the opening of new stores.