Report on Foreign Direct Investment

– Net transactional FDI flows. Net inflows of foreign direct investment (FDI) amounting to USD1,794 million in the first quarter of 2026.

– FDI capital income and reinvested of earnings. Capital income amounted to USD2,743 million in the first quarter of 2026. Broken down by sector, 61% of capital income was accounted for by the sectors “Mining and quarrying” and “Deposit-taking corporations except the central bank,” (45% and 16%, respectively). Distribution of profits and dividends amounted to USD1,891 million, the highest level in the series, in a context where Communication A 8226 of the BCRA authorized access to the forex market for the transfer of profits abroad corresponding to closed and audited balance sheets for fiscal years beginning on January 1, 2025. In this framework, reinvested earnings stood at USD852 million.

– Capital contributions. totaled USD1,061 million in the first quarter of 2026, with cash contributions accounting for 56% of the total. “Mining and quarrying” (USD503 millions) and “Manufacturing” (USD388 millions) were the sectors that received the largest contributions during the quarter.

– Debt transactions. Net outflows from debt transactions with related companies totaled USD120 million in the first quarter of 2026, explained by a reduction in commercial debt of USD613 million. The reduction in this type of debt was mainly due to the repayment of advances on agricultural export proceeds in September 2025 within the framework of the temporary reduction of export duties to zero percent (0%) as under Executive Order 682/2025.
“Manufacture of food products” within “Manufacturing” (major sector exporting oilseeds and grains) concentrated the impact of this measure (-USD620 million in debt transactions). This fall in commercial debt was partially offset by net inflows from financial debt of USD493 million.

– Mergers and acquisitions. No significant transactions were recorded during the period.

– Transactional FDI flows broken down by economic activity sector. The sectors that posted the highest FDI flows in the first quarter of 2026 were: “Mining and quarrying” (USD1,181 million) and “Deposit-taking corporations except the central bank” (USD453 million).

– Transactional FDI flows broken down by home country. In the first quarter of 2026, the United States was the main source of FDI flows, with net inflows of USD809 million; followed by the Netherlands with USD534 million.
The next largest sources were Australia (USD511 million) and Brazil (USD229 million).Regarding net outflows, Switzerland (-USD509 million) and the United Kingdom (-USD381 million) stood out.

– FDI gross liability position. As of March 31, 2026, the FDI gross liability position reached USD200,611 million with equity investments amounting to USD146,964 million, and debt instruments to USD53,647 million, with the stock of commercial debt amounting to USD32,837 million and the stock of financial debt amounting to USD20,811 million.

– FDI gross liability position broken down by sector. As of March 31, 2026, “Manufacturing” was the leading recipient of FDI, with a debt position of USD67,574 million, followed by “Mining and quarrying,” with a debt position of USD55,361 million and “Wholesale and retail trade, repair of motor vehicles and motorcycles,” with a stock of USD18,606 million. These three sectors concentrated 71% of FDI stock as of March 31, 2026.

– FDI gross liability position broken down by country. As of March 31, 2026, the United States was the main source of FDI in Argentina with a stock of USD35,310 million accounting for 18% of total holdings, followed by Spain, with a gross position of FDI of USD28,690 million (14% of the total), and the Netherlands, with USD24,733 million (12% of the total).