Summary
In the second quarter of 2023, net inflows of foreign direct investment in Argentina were observed for USD 4,803 million. They were mainly explained by debt transactions (USD 3,206 million), followed by the reinvestment of profits (USD 1,213 million). Meanwhile, net income from capital contributions of USD 364 million was recorded, and USD 20 million from mergers and acquisitions.
In year-on-year terms, there was a 5.3% drop in net income (USD 267 million). The sectors that attracted the highest FDI flows in the second 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 account for 85% of FDI flows in the quarter.
The main source of FDI flows was the Netherlands, with net inflows of USD 1,010 million, followed by the United States, with USD 770 million and Switzerland, with USD 696 million. Then came Spain, with USD 601 million, Brazil, with net flows of USD 295 million and the United Kingdom, with USD 295 million.
The gross passive position of FDI reached USD 138,248 million as of 06/30,23, with equity participations of USD 93,378 million, and debt instruments of USD 44,869 million. Compared to the previous quarter, there was an increase in the stock of FDI of USD 4,602 million, which was mainly explained by transactional flows, while exchange rate variations and other variations generated a contraction in the position of USD 201 million.
The United States is the main origin of FDI in Argentina, with a stock of USD 26,098 million as of 30.06.23, which represented 19% of the total holdings. In second place is Spain, with a gross passive position of USD 21,427 million (15% of the total), and in third place is the Netherlands, with USD 17,221 million (12% of the total). These three countries accounted for almost 50% of the FDI stock in Argentina.
