Report on Foreign Direct Investment

Executive summary

– Transactional net FDI flows. Net outflows of foreign direct investment in Argentina for USD 4,687 million in the fourth quarter of 2025, as a result of the cancellation of commercial debt of related companies (See Chart 1).

– Capital income from FDI and reinvestment of profits. Capital income was USD 1,436 million in the fourth quarter of 2025. At the sectoral level, 51% of capital income was explained by the sectors “Manufacturing industry” and “Mining and quarrying” (26% and 25%, respectively). The distribution of profits and dividends was USD 1,194 million, so the reinvestment of profits stood at USD 241 million (See Graph 2).

– Capital contributions. Net capital inflows of USD 1,111 million in the fourth quarter of 2025, of which 93% corresponded to cash contributions. “Other financial intermediaries” (USD 436 million) and “Manufacturing industry” (USD 321 million) were the sectors that received the largest amount of contributions in the quarter (See Charts 3 and 4).

– Debt transactions. Net outflows from debt transactions with related companies for USD 5,363 million in the fourth quarter of 2025, explained by a commercial deleveraging of USD 5,657 million. The reduction in this type of debt was mainly due to the cancellation of the advances on export collections from the agro-export sector that occurred in September 2025 within the framework of the temporary reduction of export duties established at zero percent (0%) through Decree 682/2025, and to a lesser extent to the deleveraging of imports of goods financed by related companies. The “Processing of food products” sector within “Manufacturing industry” (main export sector of oilseeds and cereals) largely concentrated the impact of this measure (USD -3,795 million in debt transactions). This drop in commercial debt was partially offset by net income from financial debt of USD 294 million (See Charts 5, 6 and 7).

– Mergers and acquisitions. Net outflow from mergers and acquisitions of USD 676 million in the fourth quarter of 2025, mainly explained by “Manufacturing industry” (USD 576 million), specifically the “Manufacture of chemical substances and products” sector (See Chart 8).

– Transactional FDI flows by sector of economic activity. The sectors with the highest FDI outflows in the fourth quarter of 2025 were: “Manufacturing industry”, with USD – 5,228 million and “Wholesale and retail trade, repair of motor vehicles and motorcycles”, with USD – 614 million (See Charts 9 and 11).

– Transactional FDI flows by country of origin. In the fourth quarter of 2025, net outflows of FDI from Switzerland (USD – 2,077 million), the United Kingdom (USD – 871 million), the Netherlands (USD – 690 million), Spain (USD – 299 million) and Uruguay (USD – 286 million) stood out. Among net revenues, Australia (USD 229 million) stood out (See Chart 10).

– Gross passive position. It reached USD 181,037 million as of 31.12.25, with equity participations of USD 126,618 million, and debt instruments for USD 54,419 million; of which USD 33,072 million corresponded to the stock of commercial debt and USD 21,348 million to the stock of financial debt (See Chart 12).

– Gross passive position by sector. The main destination sector of FDI as of 31.12.25 was “Manufacturing Industry”, with a position of USD 61,235 million, followed by “Mining and Quarrying”, with a position of USD 50,921 million and “Wholesale and retail trade, repair of motor vehicles and motorcycles”, with a stock of USD 16,981 million. These three sectors together accounted for 71% of the FDI stock as of 31.12.25 (See Graph 14).

– Gross passive position by country. The United States was the main origin of FDI in Argentina as of 31.12.25, with a stock of USD 32,060 million, which represented 18% of the total holdings. In second place was Spain, with a gross position of USD 25,715 million (14% of the total), and in third place was the Netherlands, with USD 21,580 million (12% of the total). These three countries accounted for 44% of the FDI stock in Argentina (See Chart 15).