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

Net income from direct investments reached about US$ 13,445 million1, and represented 2.5% of the Gross Domestic Product (GDP), a value that was 0.5 percentage points higher than that recorded the previous year and reached a maximum after the international financial crisis that began in 2008.

Contributions in local companies by non-resident investors reached an amount of US$ 8,477 million, explained by debt capitalizations of related companies that reached about US$ 4,200 million and contributions in cash, goods or other rights for US$ 4,264 million.

Debt with related companies registered a fall of US$ 1,264 million, mainly due to the capitalization of debts in the mining, oil and automotive sectors, both financial debt and debt for profits and dividends. Flows from stock transfers resulted in net income of US$ 11 million.

The income generated by Foreign Direct Investment (FDI) companies measured in U.S. dollars suffered a fall of 12% year-on-year, mainly influenced by the depreciation of the exchange rate, reaching US$ 9,850 million during 2014. The distribution of profits and dividends reached US$ 3,176 million. As a result, the reinvestment of profits totaled about US$ 6,220 million, reaching a reinvestment ratio of 66% of the profits accrued.

The oil sector was the main recipient of direct investments, with net income of US$ 2,974 million (mainly due to contributions that exceeded US$ 1,600 million, of which some US$ 640 million corresponded to debt capitalizations, which were offset by a fall in indebtedness with related companies for the same amount, and by new financing of related companies for about US$ 1,270 million). These flows were mainly directed to new projects, basically linked to the hydrocarbon exploration and production business.

The chemical, rubber and plastics industry sector registered net FDI flows of US$ 2,180 million. This result was mainly due to the reinvestment of profits of US$ 1,146 million, together with net income from contributions of US$ 632 million and net income from new financing by related companies of US$ 383 million.

Mining companies, despite being the sector with the highest FDI inflows since 2005, during 2014 registered net positive flows of US$ 121 million. This result was the result of contributions of US$ 3,424 million, of which about US$ 2,600 million corresponded basically to income from debt capitalizations, which were offset by a fall in indebtedness with related companies, and to the losses suffered by companies in the sector.

As of December 31, 2014, the estimated gross passive position of FDI in Argentine companies reached a value similar to the previous year of US$ 91,132 million. Since the beginning of the series, at the end of 2004, the passive position of FDI registered an increase of US$ 33,800 million, showing a growth of 60%.

Of the total estimated gross passive position of FDI, about US$ 62,300 million (68%) corresponded to shares in the value of the net worth (NP) of the companies, and US$ 28,830 million (32%) to gross indebtedness of NFPS FDI companies with their parent companies and/or subsidiaries abroad.

The United States was once again the main source of FDI in the country, with a stock of US$ 21,700 million, which represented 24% of total holdings at the end of 2014.

Spain accumulated 17% of total holdings and a stock of about US$ 15,800 million, resulting in a drop of 10% year-on-year. This was recorded as a result of variations in the exchange rate and other prices, despite the fact that almost all sectors received positive income flows.