Argentina’s economy has seen a significant influx of foreign investment in the past year, with Brazil and Spain being the largest sources. These two countries injected US$3,725 million and US$3,037 million, respectively, into the country’s economy. Despite tensions between Argentina and these countries, they received a combined total of US$6.7 billion in investments, surpassing the usual main source of investment from the United States.
In 2023, Brazil and Spain were ranked second and third in terms of net income by the Central Bank’s report on foreign direct investment (FDI). Switzerland, the Netherlands, China, Uruguay, Germany, and others also contributed to the total FDI flow of US$22,352 million. The increase in investment can be mostly attributed to debt flows, especially in the manufacturing industry which is dependent on imports of inputs. Reinvestment of profits was significant in the financial sector while capital contributions remained at lower levels.
At the end of 2023, the FDI stock reached US$127,556 million with Brazil and Spain holding significant shares along with Germany and Switzerland. In the fourth quarter of 2023 there were net FDI inflows of US$6,557 million with debt transactions and reinvestment of profits being the main sources. However exchange rate variations led to a slight decrease in FDI stock. Overall these investments have helped boost Argentina’s economy by attracting significant foreign capital.
In summary Argentina has received substantial foreign investment from various countries over
