Modelo Indio: Buenos Aires Becoming A Service Export Hub

BA-based Americine, a distributor of Latin American films, was recently acquired by a U.S. company.

A tale of two economies on the front pages of fishwraps today in Argentina. More than 4 million Spaniards are unemployed, the country has the highest unemployment rate in the EU and service jobs are being eliminated at a rate 8x faster than any other sector of the Spanish economy.

Conversely, Argentina stands as the polo opuesto to Spain, as service jobs are growing rapidly, and the country is emerging as a powerful global exporter of professional services. While the trend is not limited to Buenos Aires, Jose Crettaz of La Nacion focuses specifically on the mercado porteno and recent growth in five key sectors: IT, audiovisual, cultural/education, design and professional services.

62% of BA companies in those sectors, which InvestBA covers collectively as The Creative Class, generated a significant percentage of their revenues from sales to clients abroad. Those sectors accounted for US$2.48 billion in sales in 2008 and roughly 10% of employment in Buenos Aires. Factoring in the 11% historic growth rate, 2010 figures could be closer to US$3.05 billion and 12% of employment.

The BA Ministry of Economic Development and CIPPEC found that design firms are the most “internacionalizado” with 100% of them recording foreign sales, while 80% of BA IT & communications firms are selling abroad. And while buyers of BA services are spread throughout the Americas and Europe, the United States is the #1 destination and purchases 28% of all BA service exports.

With BA creative industries accounting for US$17.5 billion of economic activity in 2009, the City of Buenos Aires government is understandably optimistic about the sector’s prospects for growth.

For more information about BA’s Creative Class, search our archives and download the new issue of InvestBA Privada.