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Argentina’s Q1 FDI Rebounds to $611 Million but Signals Weak New Investment

Most inflows came from retained profits rather than fresh capital.

Overview

  • Net FDI reached $611 million in Q1 2025, improving from $90 million in Q4 2024 but marking the second weakest quarterly result since the pandemic.
  • Reinvested earnings totaled $1.465 billion, while capital contributions were $510 million, a 26% decline from a year earlier.
  • Mergers and acquisitions posted a net outflow of $1.182 billion, and related‑party debt saw net cancellations of $182 million.
  • The manufacturing sector recorded a net disinvestment of $340 million, including negative reinvested earnings of $105 million.
  • Compared with Q1 2024, overall net FDI fell 90.2% from about $6.26 billion, reflecting a sharp year‑over‑year drop.