Report on Foreign Direct Investment - Fourth Quarter of 2023
During the fourth quarter of 2023, foreign direct investment (FDI) in Argentina exhibited net inflows for USD6,557 million. These were mainly due to debt transactions (USD3,750 million) and reinvestment of profits (USD2,357 million). In turn, net inflows for capital contributions amounted to USD485 million, and net outflows for mergers and acquisitions, USD35 million. In year-on-year terms, there was an increase of USD6,420 million in net inflows.
The sectors that received the largest FDI flows in the fourth quarter of 2023 were: “manufacturing industry,” “deposit-taking institutions except the central bank,” “wholesalers and retailers, vehicle and motorcycle repair shops,” and “exploitation of mines and quarries.” These four sectors concentrated 93% of FDI flows in the fourth quarter.
Brazil was the main source of FDI flows, with net inflows of USD1,384 million; followed by the United States with USD1,236 million, and Spain with USD1,054 million. Other FDI flows came from Switzerland with USD770 million, Uruguay with net flows of USD383 million, and Germany with USD331 million.
The gross FDI liability position reached USD127,556 million as of December 31, 2023, with equity investments for USD77,093 million, and debt instruments for USD50,462 million. There was a fall of USD15,609 million in the FDI stock compared to the previous quarter, mainly explained by changes in the exchange rate among others.
The United States is the main source of FDI in Argentina, with a stock of USD23,901 million as of December 31, 2023, accounting for 19% of total holdings. Spain is the second source, with a gross liability position of USD18,336 million (14% of the total), and the Netherlands is the third source, with USD14,565 million (11% of the total). These three countries concentrated 45% of FDI stock in Argentina.
To access previous editions, click here
May 30, 2024
