A knowledge economy predicts an increase in employment and exports

Seven of the 10 leading companies in the knowledge economy expect employment demand to increase by 2024; More than half of that group believe growth will be above 10%.

Confidence is particularly high among professional services firms, where 33% estimate growth of more than 20%.

The data is the result of a survey conducted by Argencon, a company that assesses key companies in the knowledge economy, expectations and key challenges facing the industry among companies in the sector. New Economic Policy.

As for exports, the survey showed that 80% of those surveyed felt that they would increase as a result of the implementation of the new economic policies of the national government. In this context, half of these companies estimate that foreign sales growth will exceed 10%.

Meanwhile, none of the companies surveyed believe exports will be lower than in recent years.

What are the biggest challenges?

Regarding the key points to consider in order to achieve a more competitive industry, 32% of the companies surveyed cite as the main challenge to face the lack of integration or normalization of the exchange rate, this factor being the biggest determining factor of the ecosystem.

Other limiting factors are regulatory and regulatory complexity (22% of responses) and inability to pay salaries in dollars (13%).

Next are specific conditions of the knowledge economy: digital skills training (18%) and lack of English language skills (12%).

Sebastián Mogoria, president of Argencon, explained, “Based on the abolition of the exchange rate, the stabilization of the exchange rate, the simplification of regulations and the reforms announced in the labor market, the knowledge economy will make a significant improvement in its international competitiveness, which will increase employment and exports more than those recorded in recent years.

Global competition

The knowledge sector, which has grown rapidly nationally in the past five years, competes globally to ensure a steady flow of income and foreign exchange, so the actions of other countries have an impact on Argentina's exports.

According to those surveyed by Argencon consulted in the first quarter of 2024, two factors drive the growth of international trade in the knowledge economy: maintaining competitive costs (45%) and constant technological renewal (21%).

Likewise, 45% of companies believe global market demand for knowledge-based services for Latin America will be similar to global growth, and 45% estimate it will be higher. The main competitor of the Argentine offer in our region is Colombia with 40%, followed by Mexico with 28%.

Argencon's Executive Director, Luis Galessi, said in this regard, “It is important for Argentina to follow the example of countries that strengthen their knowledge industries through diligent public policies. Improving competitiveness and taking advantage of the opportunities offered by the international market is essential to position our country among the best countries worldwide.

28 leading companies in the knowledge economy participated in the ARGENCON model. Of those, 40% correspond to the IT sector, 36% to professional services, 7% to marketing, 5% to audiovisual services, 5% to biology or bioeconomy and 7% to other areas.

75% of the survey was made up of companies with more than 500 employees; 51% of the sample includes firms that export more than 50% of their production.