Report on Foreign Direct Investment

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

Summary

– Transactional net FDI flows. Net inflows from foreign direct investment in Argentina of USD 4,248 million in the third quarter of 2025.

– Capital income from FDI and reinvestment of profits. Capital income was USD 2,284 million in the third quarter of 2025. At the sectoral level, 45% of capital income was explained by “Mining and quarrying” The distribution of profits and dividends in the third quarter of 2025 was USD 626 million, so the reinvestment of profits stood at USD 1,658 million.

– Capital contributions. Net capital expenditures of USD 67 million in the third quarter of 2025, mainly explained by withdrawals in “Mining and quarrying” (USD -213 million), partially offset by contributions in the rest of the sectors, among which “Manufacturing industry” (USD 35 million) stood out. It should be clarified that the aforementioned withdrawals were made simultaneously with income from financial indebtedness in accordance with current foreign exchange regulations, with no net effect on the Foreign Exchange Market.

– Debt transactions. Net income from debt transactions with related companies of USD 3,006 million in the third quarter of 2025, explained by a commercial debt of USD 3,149 million, due to the increase in debt for exports of goods linked to the Food Processing sector (Manufacturing industry), where companies dedicated to the marketing of oilseeds and cereals are located. The increase in this type of debt was explained by the impact of Decree 682/25, which set the rate of export duties on grains and meat at 0% for those who liquidated at least 90% of the foreign currency within three working days of the corresponding DJVE being made. This led to extraordinary income from advances and pre-financing of exports during the last days of September. This increase was partially offset by financial debt cancellations of USD 143 million.

– Mergers and acquisitions. Net outflow from mergers and acquisitions of USD 348 million in the third quarter of 2025, mainly explained by “Manufacturing industry”, specifically by “Manufacture of motor vehicles, trailers and semi-trailers”.

– Transactional FDI flows by sector of economic activity. The sectors that attracted the highest FDI flows in the third quarter of 2025 were: “Manufacturing industry”, with USD 2,774 million, “Mining and quarrying”, with USD 336 million and “Deposit taking companies, except the central bank”, with USD 326 million.

– Transactional FDI flows by country of origin. The main source of FDI flows in the third quarter of 2025 was Switzerland, with net inflows of USD 1,789 million, followed by the United Kingdom with USD 1,056 million. Then came the United States, with USD 753 million and Spain, with USD 485 million. Among the net outflows, France (USD -358 million) and the Netherlands (USD -334 million) stood out.

– Gross passive position. It reached USD 182,296 million as of 09/30,25, with equity participations of USD 122,972 million, and debt instruments for USD 59,324 million; of which USD 39,076 million corresponded to the stock of commercial debt and USD 20,248 million to the stock of financial debt.

– Gross passive position by sector. The main destination sector of FDI as of 30.09.25 was “Manufacturing industry”, with a position of USD 65,450 million, followed by “Mining and quarrying”, with a position of USD 49,446 million and “Wholesale and retail trade, repair of motor vehicles and motorcycles”, with a stock of USD 17,661 million. These three sectors together accounted for 73% of the FDI stock as of 30.09.25.

– Gross passive position by country. The United States was the main origin of FDI in Argentina as of 30.09.25, with a stock of USD 32,038 million, which represented 18% of the total holdings. In second place was Spain, with a gross position of USD 24,981 million (14% of the total), and in third place was the Netherlands, with USD 21,349 million (12% of the total). These three countries accounted for 43% of the FDI stock in Argentina.