Summary
In the third quarter of 2023, net inflows of foreign direct investment in Argentina were observed for USD 6,050 million. These were mainly explained by debt transactions (USD 3,597 million), followed by the reinvestment of profits (USD 1,897 million). Meanwhile, net income from capital contributions of USD 554 million was recorded, and USD 2 million from mergers and acquisitions. In year-on-year terms, there was a 2.2% drop in net income (USD 138 million).
The sectors that presented the highest FDI flows in the third 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 90% of FDI flows in the quarter.
The main origin of FDI flows was the United States, with net inflows of USD 1,322 million, followed by Brazil, with USD 1,105 million and Spain, with USD 746 million. Then came the United Kingdom, with USD 422 million, China, with net flows of USD 342 million and France, with USD 263 million.
The gross passive position of FDI reached USD 143,118 million as of 09/30,23, with equity participations of USD 93,772 million, and debt instruments of USD 49,346 million. Compared to the previous quarter, there was an increase in the stock of FDI of USD 3,337 million, which was mainly explained by transactional flows, while exchange rate variations and other variations generated a contraction in the position of USD 2,712 million.
The United States was the main origin of FDI in Argentina, with a stock of USD 27,470 million as of 30.09.23, which represented 19% of the total holdings. In second place was Spain, with a gross passive position of USD 21,410 million (15% of the total), and in third place was the Netherlands, with USD 16,977 million (12% of the total). These three countries accounted for almost 50% of the FDI stock in Argentina.
