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 2012, net inflows from foreign direct investment (FDI) reached US$ 12,378 million, which represented 2.6% of the Gross Domestic Product (GDP) for the year, a value slightly higher than that recorded the previous year. These securities included the divestment due to change of hands provided for by Law 26741 of part of the YPF stock package.

Contributions in foreign currency from non-resident investors totaled US$ 5,332 million, with a year-on-year increase of 12%, while net financing from parent companies and subsidiaries was US$ 3,731 million. The reinvestment of profits reached a maximum of US$ 7,716 million.

These revenues were partially offset by flows from stock transfers, which resulted in a net decrease of US$ 4,400 million, basically due to the aforementioned operation.

During 2012, the income generated by FDI reached US$ 11,371 million. The return on capital measured on equity reached an annual value of 15.1%.

The gross passive position of FDI in Argentine companies reached a value of US$ 102,261 million as of 12/31/2012. Of this amount, US$ 73,191 million (71.6%) corresponded to the book value of the shares of non-resident investors in the net worth of companies in the private financial sector (SPF) and non-financial sector (NFPS) and US$ 29,070 million (28.4%) to gross indebtedness of NFPS FDI companies with their parent companies and/or subsidiaries abroad.

Since the beginning of the survey implemented by the Central Bank in 2004, the passive position of FDI registered an increase of US$ 45,116 million, which implied an average annual growth rate of 7.5%.

At the end of 2012, 43% of the stock of direct investments in Argentine companies was concentrated in the industry and agriculture sector (US$ 43,776 million), followed in importance by investments in the service sector, including the financial sector, with 31% (US$ 31,336 million), while the exploitation of natural resources accounted for the remaining 26% (US$ 27,149 million).

The mining sector, within the framework of a process of investment maturation, was the most dynamic in 2012, increasing the stock of FDI by almost 80%. For its part, despite a fall in stock of almost 10% year-on-year, the oil sector continued to be the main destination for FDI in the country.

At the end of 2012, Spain was still the main investor in terms of stock, but it continued to lose relative importance compared to the rest of the countries, ending with less than 20% of total holdings and a stock of US$ 20,206 million. Conversely, the United States continued to increase its importance as the origin of FDI in the country, with a stock of US$ 19,380 million, which represented 19% of total holdings at the end of 2012 and a nominal maximum in the series for investments of that origin considering the first level of holding.

At the end of 2012, a high degree of concentration of FDI stock was observed in a small number of companies. In this regard, out of a total of more than 3,700 reporting FDI companies, the top 10 accounted for 21% of the total stock.

A large part of the volume of foreign trade in Argentine goods is concentrated in FDI companies. In 2012, they accounted for 72% of exports and 65% of imports and generated a positive net trade balance of US$ 15,013 million.

Two sectors stand out from the rest in relation to the participation in foreign trade of goods, the automotive sector with a share of 18%, and that of oilseeds, oils and cereals exporting companies with 16%.