• Tue. May 28th, 2024

Anticipated economic reforms by Milei set to boost Argentine knowledge economy

Byeditor

Mar 25, 2024

Argentine entrepreneurs are feeling positive about the economic reforms 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, revealed that 80% of the companies surveyed anticipate a growth in exports due to the government’s liberalization policies.

The survey, which included 28 companies in the knowledge economy, 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 the absence of exchange rate unification were highlighted as major challenges by the respondents.

Argencon’s president, Sebasti├ín Mocorrea, stated that the elimination of foreign exchange restrictions, stabilization of the exchange rate, simplification of regulations, and labor market reforms will enhance the international competitiveness of the knowledge economy. This, in turn, will lead to a significant increase in employment and exports. Regulatory complexity, inability to pay salaries in US dollars, and issues related to digital talent and English skills were also identified as obstacles by the respondents.

Looking ahead, 45% of those surveyed believe that market demand for knowledge-based services in Latin America will align with global growth rates, while another 45% anticipate a higher demand. The overall sentiment among entrepreneurs is one of cautious optimism as they look forward to the positive impacts of the economic reforms on the knowledge economy sector in Argentina.

By editor

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