Restrictions on capital flows in Argentina drove a notable increase in the receipt of Foreign Direct Investment (FDI) during 2023. In this way, the country got on the podium and took third place in Latin America and second in the Southern Cone in terms of FDI, accumulating US$23,866 million, which represented 12.9% of the regional total.
Thus, Argentina experienced a significant increase in FDI of 57% compared to the US$15,201 million received in 2022, a year in which it ranked fifth in the region, only behind Brazil, Mexico, Chile and Colombia. This increase stands out in contrast to the general fall of 9.9% in FDI in the region and 10.3% in South America. The data comes from the latest report of the Economic Commission for Latin America and the Caribbean (ECLAC)which warned that growth in Argentina has been influenced by restrictions on the movement of capital, which resulted in large flows of income in the form of inter-company loans and reinvestment of profits.
Furthermore, the extensive document states that Argentina will become the main country in Latin America in terms of origin of investment in 2023, representing 21% of the total and with an impressive 97% of this investment destined for Mexico.
Source: Ambito
