The agency warned about the stagnation of investments in the region and warned of the impact of US commercial policies. For this reason, he asked “strategies for maintaining its appeal to international investors.”
The Direct foreign investment (FDI) in Argentina fell during the past year, according to the last report of the Economic Commission for Latin America and the Caribbean (ECLAC). Although in Latin America the increase was 7.1% year -on -year, the agency expressed concern about stagnation in The arrival of new investorswhich evidenced the low interest of foreign companies to establish themselves in the region.
Brazil maintained its position as the main IED receptorconcentrating 38% of the regional total, followed by Mexico with 24%. Colombia, Chile and Argentina They completed the ranking of the five main destinations, although these three countries received smaller flows than those registered in 2023.
Anyway, Argentina did have an outstanding participation in the natural resources sector. Although this item had a lower participation in regional entries compared to previous years, the local case was the exception, since it was recorded An increase in investments of 44% year -on -year, the highest in the region, driven by the exploitation of hydrocarbons.
The analysis of the ECLAC He explained that The increase in investments was traction by transnational companies that already operated in the regionespecially through increases in the reinvestment of utilities. In contrast, new capital contributions continue stagnant, which reflects “The low interest of new companies to be located in the region”according to the report.
According to statistics from the Central Bank, during 2024 there was a fall 54% in net flows compared to 2023moving from US $23,866 million au $ s10.996 million.
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The fall in investment in Argentina
This fall evidenced the difficulty for Javier Milei’s government to attract foreign capitals, even with the sanction of the incentive regime to large investments (Rigi) In the middle of the year. In this sense, the available data of the 2025 will indicate that this trend was extended.
In the first five months of this year, the FDI in Argentina registered a negative net balance of US $ 1,679 millionthe worst result for at least the last 10 years. This balance was derived from total revenues so far this year for US $ 551 million and expenditures for US $ 2,190 million, confirming the continuity of the negative trend observed in 2024.
The alert for tariffs
The report also alerted the potential impact of changes on tariff and commercial policies of the United States in future investment decisions. Due to the importance of the US market as a destination for regional exports, “It is expected that the changes in the tariff and commercial policies of that country will influence the medium and long term investment decisions“
In addition, it was emphasized that these changes They can influence future decisions about supply chainsso it considers “fundamental that the region develop strategies aimed at maintaining its appeal for international investors.”
In this sense, The United States consolidated its position as the largest investor in the region. On the contrary, the relative participation of the investment of the European Union – existing Luxembourg and the Netherlands – fell to a minimum since 2012.
Source: Ambito
