Knowledge Economy in Argentina Flourishes: Survey Shows Optimism and Challenges

Anticipated economic reforms by Milei set to boost Argentine knowledge economy

The knowledge economy in Argentina is experiencing growth due to the economic reforms implemented by President Javier Milei’s administration. A study conducted by Argencon, a business organization, revealed that 80% of companies surveyed anticipate an increase in exports due to the government’s liberalization policies.

The survey included 28 companies and showed that half of the respondents expect export growth to exceed 10%. The majority of companies represented in the study were from the information technology sector, professional services, marketing, bioscience, bioeconomy, and other areas. Data from the first half of 2023 indicated that knowledge-based services exports had reached $8.06 billion, representing an annual increase of 8.8%.

Furthermore, the survey results showed that 70% of respondents anticipate an increase in employment with more than half projecting growth of over 10%. Professional services companies are particularly optimistic with 33% expecting growth of more than 20%. However, access to foreign currency and exchange rate unification were highlighted as major challenges by the respondents.

Argencon’s president, Sebastián Mocorrea stated that regulatory complexity and labor market reforms will enhance the international competitiveness of the knowledge economy. This will lead to a significant increase in employment and exports. Regulatory complexity was identified as one obstacle by many entrepreneurs along with issues related to digital talent and English skills.

Looking ahead, entrepreneurs are cautiously optimistic about market demand for knowledge-based services in Latin America aligning with global growth rates. With continued efforts towards economic reforms and addressing challenges such as access to foreign currency and exchange rate unification, there is potential for significant growth in the knowledge economy sector in Argentina.

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