FDI in Argentina

Overview by Globlatrade.net:

FDI in Figures

FDI influx into Argentina which were growing steadily since 2004 halved in 2009 as an effect of the global economic recession. They should continue their recovery which began in 2010.  Argentina ranks 4th amongst the South American countries that attract the most FDI flow (after Colombia, Brazil and Chile). The three main investors in Argentina are the United States, Spain and France.  Argentina's poor ranking in this classification is due the disastrous image conveyed by the country during the economic crisis which affected its economy between the end of 90s and the beginning of 2000. Nevertheless, Argentina has clear strenghts: its natural resources are considerable (copper, gas and oil) and its workforce is highly-skilled and competitive.

Foreign Direct Investment 200720082009
FDI Inward Flow (million USD) 6,4739,7264,895
FDI Stock (million USD) 67,57477,06680,996
Performance Index*, Ranking on 141 Economies 1038791
Potential Index**, Ranking on 141 Economies 5960-
Number of Greenfield Investments*** 112120111
FDI Inwards (in % of GFCF****)
FDI Stock (in % of GDP) 25.723.326.2

Source: UNCTAD

Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.


FDI Inflows By Countries and Industry

Main Investing Countries 2007, in %
Spain 23.0
Brazil 10.0
USA 8.0
Chili 8.0
Luxembourg 8.0
Germany 7.0
France 7.0
Main Invested Sectors 2007, in %
Oil sector 19.0
Extraction 17.0
Car industry 14.0
Chemical and plastic industry 6.0
Trade 7.0
Finance 6.0

Source: ProsperAr, Invest in Argentina

Form of Company Preferred By Foreign Investors
Public limited company - SA
Form of Establishment Preferred By Foreign Investors
Main Foreign Companies
Many foreign companies, mostly european and american, have invested in Argentina. We can quote Peugeot, General Motors, Telefonica, Wal-Mart, Sony. . .
Sources of Statistics
INDEC, national statistics center

Return to top

Why You Should Choose to Invest in Argentina

Strong Points
A wealth of raw materials, good level of education, a human development indicator noticeably above the Latin American average, and strong growth for several years now.
Weak Points
The banking sector is fragile and under-capitalized; investments in energy are insufficient and inflation is high.
Government Measures to Motivate or Restrict FDI
The government has established various measures to encourage foreign investment in the form of incentives to invest in capital goods and infrastructures, financing programs, capacity promotion (employment and quality amongst others), encouraging innovation and technological development, geographic incentives and sectorial investments.
For further information, consult the ProsperAr website.

Any Comments About This Content? Report It to Us.

Read more See less

No content has been posted to this folder yet.
Be the first to feature your expertise related to FDI in Argentina!

  • Post any content you may have that features your expertise, such as a text article with business tips, presentation, market report, etc
  • By sharing your knowledge you gain more visibility for your profile not only on GlobalTrade.net but across the web

Post your content now by simply clicking on the button below.

Check these folders already populated with content posted by other users:

Click here to find out more about key benefits and instructions for contributing to the site.


Post any content you may have that features your expertise and offers valuable information to the international trade community.

The more informative content you post the more visible your will be, as your valuable content will link directly to your profile.

Check these sample pages for illustration: