The services sector in Argentina has demonstrated remarkable resilience in the face of the country's macroeconomic and structural challenges. This was stated by Pablo Lavigne, Secretary of Production Coordination of the Ministry of Economy, during Webinar “Boosting the External Sector: The Role of Trade in Services in the Region”, held on January 23, 2025. In her speech, Lavigne highlighted both the opportunities and challenges facing the knowledge industry, underlining its key role in Argentina's economic development and global insertion.
“In Argentina, there are structural factors that have given resilience to the sector, despite the macroeconomic disorder and instability of the country,” said Lavigne. Despite this challenging context, the services sector has managed to sustain itself, albeit with mixed results in terms of exports. “Still, in 2024, exports of knowledge-based services grew by 15%, reaching approximately USD 9.000 billion.”
One of the main assets of the sector is the quality of Argentine talent. “The level of English in Argentina is excellent, the best in Latin America, and access to education remains a fundamental pillar, especially in private universities, which have adapted their curricula to the needs of the sector,” said Lavigne. She also highlighted that the legal framework implemented since 2024 has provided relative stability to this industry, in a country historically characterized by economic volatility.
AI, simplification and global vision
Looking ahead, Lavigne noted that Artificial intelligence (AI) is emerging as one of the central axes of the sector's development“The combination of talent, accessible energy and government ambition positions Argentina as an emerging global player in this field,” he explained. However, he warned that the current focus is on economic deregulation, in contrast to the country’s tradition of resorting to “hyper-regulatory” policies.
The service sector must not only grow in a globalized environment, but also overcome internal challenges such as restricted access to capital goods — computers, servers, among others — and the shortage of credit. "While in other countries these problems have been resolved, in Argentina they still represent significant barriers," said Lavigne.
The solution, according to the official, is to create favorable conditions for the private sector, eliminating bureaucratic obstacles and facilitating access to financing.Our strategy is to let the private sector lead the growth. The talent and resources are already there; we just need to provide them with tools such as access to credit and simplification of processes.", Held.
Lavigne also stressed the importance of a cultural change towards a more open and competitive economy. “Historically, Argentina has been a closed economy, but the new generations are promoting a more innovative and productive approach. Thinking of ourselves as part of a global economy is key to the development of the sector,” she said.
Despite the progress, obstacles persist, such as informal employment and difficulties in exporting services due to the exchange rate gap. However, Lavigne stressed that the incipient macroeconomic stability has already generated improvements in the sector.Argentina has the opportunity to establish itself as a benchmark in knowledge-based services, but it must continue along the path of deregulation, modernization and openness to the world.«He concluded.
Trade in services in the region
During the event, the annual reports of the IDB and ECLAC on foreign trade in Latin America and the Caribbean were discussed, with a special focus on the role of services as a driver of exports.
The IDB highlighted that global trade in knowledge-based services (KBS) has maintained sustained growth, with a cumulative annual rate of 7% between 2013 and 2023, surpassing trade in goods (2,3%) and total services (4,9%). This progress has been driven by digitalization, the servicification of the economy, and favorable regulatory changes.
In the context of Latin America and the Caribbean, Argentina is among the main exporters of SBC, behind Brazil and Mexico, and together with Costa Rica and Colombia. Over the past decade, SBC exports from the region have grown by 4,7% annually, outpacing the growth of exports of goods (2,9%) and total services (4,3%), although still below the global average. The regional supply is concentrated in business services and ICT, but with less participation in research and development, which creates challenges in the face of automation and the advance of artificial intelligence.
According to the IDB, the competitiveness of SBC exports in the region is determined by factors such as the level of education, the quality of the regulatory regime, digital infrastructure, provisions on services in trade agreements and the signing of double taxation treaties.
ECLAC also showed that, in 2024, regional service exports grew at a double-digit rate for the fourth consecutive year. Despite the significant growth of services exports in the region, they still represent a smaller proportion of total trade compared to the world average. In its PInternational Trade Outlook for Latin America and the Caribbean, 2024: Reconfiguration of global trade and options for regional recovery, ECLAC identified modern services, particularly the technological sectors, as key areas to boost sustainable development in the region.
In this context, The IDB and ECLAC agreed on the importance of trade in services and the need to implement strategic policies to strengthen digital infrastructure, protect intellectual property and foster the development of human capital, in order to maximize the potential of these knowledge-based services. They also proposed promoting collaboration between countries in the region to boost digital trade, support training programs and facilitate the exchange of best practices. To this end, the highlighted publications are shared.
- IDB. Trade and Integration Monitor 2024: Challenging the trend: The potential of knowledge-based services: here
- ECLAC – International Trade Outlook for Latin America and the Caribbean, 2024: Reconfiguration of global trade and options for regional recovery: here
- IDB – Trade Trends Estimates: Latin America and the Caribbean. 2025 Edition: here
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