Foreign Direct Investments During the First Quarter of 2023 Amounted to Nearly USD4,000 Million
Foreign direct investments in Argentina during the first quarter of 2023 exhibited net inflows for USD3,810 million, recording a real growth rate of 2% year-on-year. This information is included in the Report on Foreign Direct Investment published by the BCRA. Net inflows of foreign direct investments (FDI) were mainly due to debt transactions (USD1,892 million) and reinvestment of profits (USD1,772 million); while net inflows for capital contributions amounted to USD162 million. There were USD16 million net outflows on account of mergers and acquisitions. The sectors that raised the largest FDI flows in the first quarter of 2023 were: deposit-taking institutions—except the BCRA—which concentrated 32% of FDI flows (USD1,221 million); manufacturing industry, accounting for 29% (USD1,108 million), and reversing the drop recorded in the fourth quarter of 2022; and exploitation of mine and quarry, which represented 14% (USD551 million). During the first quarter of 2023, the United States was the main source of FDI flows, with net inflows of USD968 million; followed by Brazil, with USD871 million; and Spain, with USD630 million. Then, Uruguay, with USD245 million; China, with net flows of USD162 million; and France, with USD155 million. The gross FDI liability position reached USD133,304 million as of March 31, 2023, with equity investments for USD91,901 million, and debt instruments for USD41,403 million. There was an increase in the FDI stock of USD3,111 compared to the previous quarter, which was mainly explained by transactional flows (USD3,810 million); while changes in the exchange rate and other changes caused a contraction of USD700 million in the position. The United States is the main source of FDI in Argentina, with a stock of USD25,684 million as of March 31, 2023, accounting for 19% of total holdings. Spain is the second source, with a gross liability position of USD21,084 million (16% of the total), and the Netherlands is the third source, with USD16,343 million (12% of the total). These three countries concentrated nearly 50% of FDI stock in Argentina. The Report on Foreign Direct Investment—published periodically between 2005 and 2016—is now resumed with an upgraded compilation methodology and renewed information according to international organizations’ standards, including data on FDI flows and positions by type of flow, country of origin and economic sector receiving the investment.
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August 31, 2023
