The small Latin American country is the leader in software exports: it exceeds US$ 1,000 million and is 4.3% of its GDP

The Information Technology (IT) represent a crucial component for a country’s economy. country, influencing multiple aspects of the economic development And social.

This nation has become one of the main exporters of software in Latin America. Despite being a small country with a population of approximately 3.5 million peoplehas developed a robust and dynamic technology sector. As a result, it has exponentially increased its GDP and is one of the few in the region that has significant exports to USA.

This small nation surpasses countries like Chile. Photo: IA

Which small country in Latin America is the leader in technology exports?

Uruguay is the small country of Latin America With 3.5 million inhabitants, the country is experiencing faster than average economic growth, with a share of the Gross Domestic Product (GDP) that doubles every decade. These data come from an impact study carried out by the consulting firm CPA Ferrere for the Uruguayan Chamber of Information Technology (Cuti).

Uruguayan software companies such as GeneXus and dLocal have gained international recognition, and the country stands out for its high level of Internet connectivity and advanced digital infrastructure. This transformation has positioned Uruguay as a technological hub in the region, attracting investment and talent in the information technology sector.

The report concludes that this sector generates more than 22,000 direct and “quality” jobs.

How has this development influenced Uruguay?

The technology sector has become a “crucial component” of the Uruguayan economy, representing the 4.3% of GDP and consolidating itself as one of the five main export sectors. In 2022, exports reached a total of 1,816 million dollars, equivalent to 65% of its total turnover of 2,840 million dollars. Dollars. This value has multiplied by 13 since 2000. In 2010, foreign sales were 225 million dollars. 85% of the exports They were destined USA.

Software exports represent 4.3% of Uruguay’s GDP. Photo: Mundo Posgrado

He business model in the information technology (IT) sector in Uruguay The sector focuses mainly on companies dedicated to the development and maintenance of systems, known as “software factories”, which represent 70% of the sector’s activity and 80% of exports. The sector has more than 500 companies, offering an average salary of 91,157 Uruguayan pesos (approximately 2,300 US dollars), according to data published by El País.

This remuneration is more than double the average salary in Uruguaywhich is just over US$1,000 (41,805 Uruguayan pesos), and exceeds other activities with comparatively high salaries, such as financial and insurance activities (around US$2,000), professional and scientific activities (approximately US$1,700), transport and storage (around US$1,200) and teaching (approximately US$1,100).

Although this industry still has great growth potential, it has already established itself as one of the most important sectors of the Uruguayan economy. In 2022, it ranked fifth in the export ranking, behind the meat sector, the forestry industry, soybeans and tourism, with a share of 9.3%.

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