Summary
In the first quarter of 2024, net inflows from foreign direct investment in Argentina were observed for USD 6,572 million, which were mainly explained by debt transactions (USD 3,511 million), followed by the reinvestment of profits (USD 2,353 million). Meanwhile, net income from capital contributions of USD 366 million and USD 342 million from mergers and acquisitions were recorded. In year-on-year terms, net revenues increased by USD 1,837 million.
The sectors that attracted the highest FDI flows in the first quarter of 2024 were: “Deposit-taking companies, except the central bank”, “Manufacturing industry”, “Mining and quarrying” and “Wholesale and retail trade, repair of motor vehicles and motorcycles”. These four sectors accounted for 96% of FDI flows in the quarter.
The main origins of FDI flows were Brazil and Spain, with net inflows of USD 1,441 million each, followed by the United States, with USD 1,022 million. Then came China, with USD 432 million, Uruguay, with USD 330 million and the Netherlands, with USD 305 million.
The gross passive position of FDI reached USD 152,470 million as of 31.03.24, with equity participations of USD 97,120 million, and debt instruments of USD 55,349 million. Compared to the previous quarter, an increase in the stock of FDI of USD 22,168 million was observed, mainly explained by price variations (as a result of the revaluations of companies’ assets and liabilities) that were significantly higher in the first quarter of 2024 than the variation in the price of the dollar in the same period.
The United States was the main origin of FDI in Argentina, with a stock of USD 28,257 million as of 31.03.24, which represented 19% of the total holdings. In second place was Spain, with a gross passive position of USD 21,295 million (14% of the total), and in third place was the Netherlands, with USD 16,528 million (11% of the total). These three countries accounted for 43% of the FDI stock in Argentina.
