Summary
In the fourth quarter of 2023, net inflows of foreign direct investment in Argentina were observed for USD 6,557 million. These were mainly explained by debt transactions (USD 3,750 million), followed by the reinvestment of profits (USD 2,357 million). Meanwhile, net income from capital contributions of USD 485 million was recorded and there were net outflows of USD 35 million due to mergers and acquisitions. In year-on-year terms, net revenues increased by USD 6,420 million.
The sectors that attracted the highest FDI flows in the fourth quarter of 2023 were: “Manufacturing industry”, “Deposit-taking companies, except the central bank”, “Wholesale and retail trade, repair of motor vehicles and motorcycles” and “Mining and quarrying”. These four sectors accounted for 93% of FDI flows in the quarter.
The main source of FDI flows was Brazil, with net inflows of USD 1,384 million, followed by the United States, with USD 1,236 million and Spain, with USD 1,054 million. Then came Switzerland, with USD 770 million, Uruguay, with net flows of USD 383 million and Germany, with USD 331 million.
The gross passive position of FDI reached USD 127,556 million as of 31.12.23, with equity participations of USD 77,093 million, and debt instruments of USD 50,462 million. Compared to the previous quarter, there was a fall in the stock of FDI of USD 15,609 million, mainly explained by variations in the exchange rate and other variations.
The United States was the main origin of FDI in Argentina, with a stock of USD 23,901 million as of 31.12.23, which represented 19% of the total holdings. In second place was Spain, with a gross passive position of USD 18,336 million (14% of the total), and in third place was the Netherlands, with USD 14,565 million (11% of the total). These three countries accounted for 45% of the FDI stock in Argentina.
