Argentina posts lowest foreign investment in Latin America

May 28 (UPI) -- Argentina recorded the lowest level of foreign direct investment among Latin America's largest economies in 2025, underscoring the country's ongoing struggle to attract capital despite incentives promoted by President Javier Milei's government.

According to data from the Organization for Economic Cooperation and Development, or OECD, Argentina received $3.134 billion in foreign direct investment, placing last among the regional economies included in the report.

Foreign direct investment is considered a key driver of economic development because it provides external financing, supports job creation and promotes technology transfer and productivity growth. It can also strengthen a country's balance of payments and help modernize strategic industries through long-term productive projects.

By comparison, Brazil attracted $76.877 billion in foreign direct investment, Mexico received $40.871 billion, Chile drew $13.152 billion, Colombia received $11.462 billion and Costa Rica attracted $5.733 billion.

Several Argentine media outlets, including newspaper Clarín, reported that the OECD figures caused discomfort within the government.

Economy Minister Luis Caputo rejected that interpretation.

"It does not generate any discomfort. In fact, it is the most logical outcome after so many years of populism," Caputo wrote on X. "Foreign direct investment usually requires many years of economic and political stability to be attracted."

Caputo also highlighted projects announced since Milei took office.

"The miracle is that in just two and a half years there are $140 billion in diverse projects set to be invested over the coming years," he said. "These investments will permanently change Argentina's productive matrix."

The figures come as the government seeks to attract large-scale investment through the Incentive Regime for Large Investments, known by its Spanish acronym RIGI. This week, the administration sent Congress a bill dubbed "Super RIGI," which would expand tax and foreign exchange benefits for new industries.

Despite those incentives, some analysts say results remain limited. A report by Argentine think tank Misión Productiva, cited by news outlet Infobae, said the OECD data suggest that projects tied mainly to mining, oil and energy have not triggered a broader wave of foreign capital inflows.

"It is not possible to sustain a development strategy based on large extractive projects," the organization said. "The ability to attract investment also depends on factors such as the dynamism of the domestic market, access to credit, macroeconomic stability, infrastructure and growth prospects in sectors such as manufacturing, construction and small and medium-sized businesses."

The report said several factors help explain Argentina's weak investment performance, including stalled public infrastructure projects, limited productive credit, macroeconomic uncertainty, an uncompetitive exchange rate and the fragility of small and medium-sized enterprises.

Misión Productiva warned that Argentina's challenge will be to expand investment beyond large natural resource projects and rebuild conditions for more diversified productive growth.

Meanwhile, the government is pushing ahead with the proposed "Super RIGI" initiative. The bill would deepen existing customs, tax and foreign exchange incentives, targeting strategic sectors including artificial intelligence, semiconductors, advanced biotechnology and technology infrastructure.

Unlike the current RIGI framework, which sets minimum investment thresholds between $200 million and $600 million depending on the sector, the new proposal would establish a single minimum investment of $1 billion.

Companies seeking to participate would also be required to commit at least 20% of the total investment within the first two years after joining the program. The proposal also includes a reduction in the corporate income tax rate from 25% to 15% as an incentive for large-scale investment.

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This story was originally published May 28, 2026 at 11:53 AM.