In 2023, foreign direct investment (FDI) inflows into Argentina reached a record US$22.35 billion, surpassing the previous year by over US$4 billion. According to the Central Bank’s report on FDI, Brazil and Spain were the top sources of investment, with Switzerland and China following closely behind.
Debt transactions were the main transactional flow of FDI in 2023, with Brazil and Switzerland standing out for their magnitude. The reinvestment of profits was also a significant factor, encouraged by certain economic conditions such as exchange rate appreciation.
In the fourth quarter of 2023 alone, there were net FDI inflows of US$6.557 billion, driven by debt transactions and reinvestment of profits. The United States remained the main source of investment flows into Argentina throughout the year.
At the end of 2023, the FDI stock stood at US$127.556 million, with Spain and Netherlands joining the United States as the top three countries for foreign direct investment in Argentina. Despite fluctuations in exchange rates that caused a slight decrease in stock value, investors remain optimistic about opportunities for growth and development in this dynamic market.
Overall, these findings suggest that despite fluctuations in exchange rates and other economic factors affecting investment flows into Argentina, it remains an attractive destination for foreign investors due to its strong economic growth prospects and diverse range of industries.
