Annual publication on the evolution of foreign direct investment liabilities in companies in the country, in force from 2004 to 2016.

These statistics were based on the information obtained in the Survey of Direct Investments in resident companies provided by Communication A4237 and complementary ones, which was replaced by the Survey of External Assets and Liabilities established by Communication A6401 based on the information for 2017.

Executive Summary

In an international context characterized by the effects of the crisis that began in the central countries, foreign direct investment (FDI) flows had a positive balance of US$ 3,115 million in 2009. This was the result of net capital contributions of US$ 2,585 million (83% in cash) and reinvestments of profits of US$ 2,151 million. These flows were partly offset by the net reduction in indebtedness with parent companies and subsidiaries abroad, basically by imports of goods, for US$ 1,387 million.

In the five-year period 2005-2009, net FDI flows totaled the equivalent of US$ 35,373 million.

The fall in net FDI flows in 2009, compared to the record of US$ 10,387 million in 2008, was basically associated with the decrease in external debt liabilities and, to a lesser extent, with lower contributions and changes in the hands of shareholdings. Income from direct investment in 2009 totaled US$ 8,125 million.

The fall in the profitability of investments in the capital of companies, estimated on average at 13.7% per year, was accompanied by a reduction in the amounts drawn, without affecting the net amount of reinvested or undrawn profits.

The gross passive position of FDI in Argentine companies totaled US$ 78,240 million as of December 31, 2009, of which US$ 58,493 million (75%) corresponded to the shares of these investors in the net worth of companies and US$ 19,747 million (25%) to gross indebtedness of FDI companies in the private non-financial sector (NFPS) with their parent companies and/or subsidiaries abroad.

In the last five years, the direct investment position registered an increase of US$ 18,946 million in terms of shares in the book values of the net worth of companies held by direct investors. This increase, in the order of 48%, implied an average annual growth rate of more than 8%.

In local currency, the declared values implied an increase in the gross position of foreign direct investments in local companies from $202,596 million at the end of 2008 to $222,955 million at the end of 2009. On the contrary, taking the U.S. dollar as a unit of account, they were lower by 2% year-on-year, as a result of the variations in exchange rate quotations during the course of 2009.

The reduction in the position in the currency of account was concentrated in the automotive (US$ 1,376 million) and oil (US$ 1,015 million) sectors. In the first case, mainly due to a reduction in intra-firm commercial debt; while the behavior observed in the oil sector was basically linked to profit transfers and dividends for amounts higher than those accrued in the period, and to sales to residents of shareholdings. On the other hand, among the sectors that saw the value of the gross external position grow in the currency of account, the private financial sector (SPF) (US$ 552 million) and the mining sector (US$ 468 million) stood out, basically due to the profits accrued and not drawn in the period.

The first 10 direct investment companies, in terms of their gross passive position, accumulated 23% of the total position, while the first 200 companies concentrated about 70%.

The distribution by country, taking into account the first level of holding of direct investment in local firms, showed that the top five countries of origin of investment accounted for almost two-thirds of total holdings as of December 2009. Spain was in first place with US$ 22,115 million (28%), followed by the United States with US$ 13,137 million (17%), the Netherlands with US$ 6,652 million (9%), Brazil with US$ 4,212 million (5%) and Chile with US$ 4,134 million (5%).