Summary
In the first quarter of 2023, net inflows of foreign direct investment in Argentina were observed for USD 3,810 million. These were mainly explained by debt transactions (USD 1,892 million) and the reinvestment of profits (USD 1,772 million), while income from capital contributions was USD 162 million, and net outflows of USD 16 million were produced by mergers and acquisitions. Net income for the first quarter of 2023 registered a year-on-year growth of 2%.
The sectors that attracted the highest FDI flows in the first quarter of 2023 were: “Deposit-taking companies, except the central bank”, which accounted for 32% of FDI flows with USD 1,221 million; “Manufacturing industry”, with USD 1,108 million, which accounted for 29% of the total and reversed the fall recorded in the fourth quarter of 2022; and “Mining and quarrying”, with USD 551 million and 14% of the quarter’s cash flows.
During the first quarter of 2023, the main source of FDI flows was the United States, with net inflows of USD 968 million; followed by Brazil, with USD 871 million, and Spain, with USD 630 million.
Then came Uruguay, with USD 245 million; China, with net flows of USD 162 million, and France, with USD 155 million.
The gross passive position of FDI reached USD 133,304 million as of 31.03.23, with equity participations of USD 91,901 million, and debt instruments of USD 41,403 million. Compared to the previous quarter, there was an increase in the stock of FDI of USD 3,111, which was mainly explained by transactional flows, USD 3,810 million, while exchange rate variations and other variations generated a contraction in the position of USD 700 million.
The United States is the main origin of FDI in Argentina, with a stock of USD 25,684 million as of 31.03.23, which represented 19% of the total holdings. In second place is Spain, with a gross passive position of USD 21,084 million (16% of the total), and in third place is the Netherlands, with USD 16,343 million (12% of the total). These three countries accounted for almost 50% of the FDI stock in Argentina.
