Report on Foreign Direct Investment

Quarterly publication that exposes and analyzes the evolution of foreign direct investment liabilities in companies in the country, in particular the variations in the position and the evolution of the main flows (capital contributions, reinvestment of profits and debt instruments, among others).

Summary

– Net FDI flows. Net foreign direct investment inflows in Argentina of USD 611 million in the first quarter of 2025, explained by reinvestment of profits of USD 1,465 million and capital contributions of USD 510
million, partially offset by net outflows of USD 1,182 million from mergers and acquisitions and debt cancellations of USD 182 million.
– Capital income from FDI and reinvestment of profits. A capital income of USD 1,712 million was estimated for the first quarter of 2025. At the sectoral level, 38% of capital income was explained by “Mining and quarrying” and 35% by “Deposit-taking companies, except the central bank”. The distribution of profits and dividends for the first quarter of 2025 was USD 246 million. With these figures, the reinvestment of profits in the period stood at USD 1,465 million.
– Capital contributions. Net income from capital contributions of USD 510 million in the first quarter of 2025, of which 49% corresponded to cash contributions. “Mining and quarrying” (USD 249 million) and “Manufacturing industry” (USD 69 million) were the sectors that received the largest amount of contributions in the quarter.
– Debt transactions. Net debt cancellations with related companies for USD 182 million in the first quarter of 2025, explained by commercial deleveraging for USD 223 million, specifically by the cancellation of debt for imports of goods, partially offset by an increase in the debt of exports of goods. Increase in financial debt by USD 41 million.
– Mergers and acquisitions. Net outflow from mergers and acquisitions of USD 1,182 million in the first quarter of 2025, mainly explained by “Information and communications”.
– FDI flows by sector of economic activity. The sectors that attracted the highest FDI flows in the first quarter of 2025 were: “Mining and quarrying”, with USD 758 million, and “Deposit companies, except the central bank”, with USD 610 million. In FDI outflows, “Information and communications” (USD -881 million) and “Manufacturing industry” (USD -340 million) stood out.
– FDI flows by country of origin. The main source of FDI flows in the first quarter of 2025 was Switzerland, with net inflows of USD 916 million, followed by Canada with USD 337 million. Then came the United States, with USD 303 million, Uruguay, with USD 248 million and the Netherlands, with USD 232 million. Among the net outflows, Brazil (USD -898 million) and Spain (USD -642 million) stood out.
– Gross passive position. It reached USD 187,029 million as of 31.03.25, with equity participations of USD 132,758 million, and debt instruments for USD 54,272 million.
– Gross passive position by sector. The main destination sector of FDI as of 31.03.25 was “Manufacturing industry”, with a position of USD 67,236 million, followed by “Mining and quarrying”, with a position of USD 49,762
million and “Wholesale and retail trade, repair of motor vehicles and motorcycles”, with a stock of USD 18,196 million. These three sectors together accounted for 72% of the stock as of 31.03.25.
– Gross passive position by country. The United States was the main origin of FDI in Argentina as of 31.03.25, with a stock of USD 31,882 million, which represented 17% of the total holdings. In second place was
Spain, with a gross passive position of USD 27,379 million (15% of the total), and in third place was the Netherlands, with USD 24,054 million (13% of the total). These three countries accounted for 45% of the FDI stock in Argentina.