Knowledge Economy Boosts: Entrepreneurs Optimistic about Argentina’s Economic Reforms

Anticipated economic reforms by Milei set to boost Argentine knowledge economy

Entrepreneurs in Argentina are optimistic about the economic reforms being implemented by President Javier Milei’s administration. They believe that these changes will lead to increased employment opportunities and boost exports in the knowledge economy sector.

A study conducted by Argencon, a business organization, found that 80% of the companies surveyed anticipate a growth in exports due to the government’s liberalization policies. The study included 28 companies in the knowledge economy, with half of the respondents expecting 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 showed 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 the absence of exchange rate unification were highlighted as major challenges by the respondents.

Argencon’s president stated that eliminating foreign exchange restrictions and stabilizing the exchange rate will enhance international competitiveness in the knowledge economy sector. This will lead to significant increases in employment and exports. Regulatory complexity was also identified as a challenge for businesses operating in this sector.

Looking ahead, entrepreneurs are cautiously optimistic about market demand for knowledge-based services in Latin America aligning with global growth rates. They anticipate higher demand for these services but also face obstacles such as salary payment issues and digital talent shortages.

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