Report on Foreign Direct Investment - First Quarter of 2024
During the first quarter of 2024, foreign direct investment (FDI) in Argentina exhibited net inflows for USD6,572 million. These were mainly due to debt transactions (USD3,511 million) and reinvestment of profits (USD2,353 million). In turn, net inflows for capital contributions amounted to USD366 million and, for mergers and acquisitions, USD342 million. In year-on-year terms, there was an increase of USD1,837 million in net inflows.
The sectors that raised the largest FDI flows in the first quarter of 2024 were: “deposit-taking institutions, except for the central bank,” “manufacturing industry,” “exploitation of mines and quarries,” and “wholesalers and retailers, vehicle and motorcycle repair shops.” These four sectors concentrated 96% of FDI flows in the first quarter.
Brazil and Spain were the main source of FDI flows, with net inflows of USD1,441 million each, followed by the United States (USD1,022 million); China (USD432 million); Uruguay (USD330 million); and the Netherlands (USD305 million).
The FDI gross liability position reached USD152,470 million as of March 31, 2024, with equity investments amounting to USD97,120 million, and debt instruments to USD55,349 million. There was an increase of USD22,168 million in the FDI stock compared to the previous quarter, mainly explained by price changes (caused by the revaluation of companies' assets and liabilities). During the first quarter of 2024, price changes were significantly higher than the change in the price of the US dollar in the same period.
The gross liability position of FDI from the United States amounted to USD28,257 million as of March 31, 2024, accounting for 19% of total holdings. During the same period, the gross liability position of FDI from Spain reached USD21,295 million (14% of the total), and that of the Netherlands, USD16,528 million (11% of the total). These three countries concentrated 43% of FDI in Argentina.
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August 29, 2024
