Report on Foreign Direct Investment

Quarterly report that analyzes the liabilities of foreign direct investment in companies in the country.

Summary

– Net FDI flows. Net outflows of foreign direct investment in Argentina for USD 356 million in the fourth quarter of 2024. Debt cancellations of USD 1,425 million and net outflows of USD 822 million from mergers and acquisitions, partially offset by reinvestment of profits of USD 1,158 million and capital contributions of USD 733 million.
– Capital income from FDI and reinvestment of profits. A capital income of USD 1,463 million was estimated for the fourth quarter of 2024. At the sectoral level, 52% of capital income was explained by “Deposit-taking companies, except the central bank”. The distribution of profits and dividends for the fourth quarter of 2024 was USD 304 million. With these figures, the reinvestment of profits in the period stood at USD 1,158 million.
– Capital contributions. Net income from capital contributions of USD 733 million in the fourth quarter of 2024, of which 66% corresponded to cash contributions. “Mining and quarrying” (USD 393 million) and “Manufacturing industry” (USD 101 million) were the sectors that received the largest amount of contributions in the quarter.
– Debt transactions. Net debt outflows of USD 1,425 million in the fourth quarter of 2024, explained by cancellations of commercial debt (for USD 3,287 million), specifically by the cancellation of debt for imports of goods with related companies; partially offset by an increase in financial debt.
– Mergers and acquisitions. Net outflow from mergers and acquisitions of USD 822 million in the fourth quarter of 2024, mainly explained by the “Mining and quarrying” and “Other financial intermediaries” sectors.
– FDI flows by sector of economic activity. The sectors that attracted the highest FDI flows in the fourth quarter of 2024 were: “Mining and quarrying”, with USD 1,722 million, and “Deposit collection companies, except the central bank”, with USD 782 million. FDI outflows included “Manufacturing Industry” (USD -1,730 million) and “Wholesale and Retail Trade, Repair of Motor Vehicles and Motorcycles” (USD -797 million); sectors in which a net deleveraging was observed in the quarter.
– FDI flows by country of origin. The main source of FDI flows in the fourth quarter of 2024 was Uruguay, with net inflows of USD 1,384 million, followed by France with USD 716 million. Then came Spain, with USD 288 million, Australia, with USD 170 million and Canada, with USD 118 million. Among the net outflows, Brazil (USD -584 million) and Switzerland (USD -550 million) stood out.
– Gross passive position. It reached USD 175,664 million as of 12/31,24, with equity holdings of USD 121,177 million, and debt instruments of USD 54,487 million.
– Gross passive position by sector. The main destination sector of FDI as of 31.12.24 was “Manufacturing Industry”, with a position of USD 64,297 million, followed by “Mining and quarrying”, with a position of USD 45,337 million and “Wholesale and retail trade, repair of motor vehicles and motorcycles”, with a stock of USD 16,973 million. These three sectors together accounted for 73% of the stock as of 31.12.24.
– Gross passive position by country. The United States was the main origin of FDI in Argentina as of 31.12.24, with a stock of USD 29,445 million, which represented 17% of the total holdings. In second place was Spain, with a gross passive position of USD 26,805 million (15% of the total), and in third place was the Netherlands, with USD 21,011 million (12% of the total). These three countries accounted for 44% of the FDI stock in Argentina.