FDI inflow sees uptrend

FE Report | Published: December 31, 2018 11:24:05 | Updated: January 13, 2019 16:54:43

Picture used for illustrative purpose only — Collected

The inflow of foreign direct investment (FDI) in the first ten months of the outgoing year, 2018, witnessed a moderate rise as was indicated initially.

The full data of FDI is available for the first half (January-June) of the year while primary estimation is available for the next four months (July-October).

The latest statistics on the balance of payments (BoP) showed that net FDI inflow declined by around 8.0 per cent during the July-October period to $440 million.

It was $475 in the corresponding period last year.

Meanwhile, gross FDI inflow rose by around 39 per cent to $960 million from July to October of 2018.

The amount was $693 million in the same period in 2017.

Again, the central bank survey data showed that net FDI inflow in the first half of the outgoing year stood at $1415.97 billion.

The amount was 44 per cent higher than that of the same period of the last calendar year.

Adding the first-half data to the BoP data on FDI in the July-October period, the net inflow of FDI in first 10 months of 2018 stood at $1855.98 million.

The annual net FDI inflow in 2017, however, stood at $2151.56 million.

Bangladesh Bank estimates and finalises FDI-related data on the basis of an enterprise survey.

Data generated from the survey findings is finally adjusted with the annual BoP data.

So, there is always a difference between the provisional BoP data on FDI and the final estimate based on survey with adjustment.

In the outgoing year, almost three fourths of the net FDI is channelled as reinvested earnings and intra-company loans, according to the first-half data.

Meanwhile, FDI inflow globally dropped sharply in the first half of 2018 and estimated at $470 billion against $794 billion of the same period in 2017.

Months ago, Investment Trend Monitor, released by the United Nations Conference on Trade and Development (UNCTAD), unveiled the declining trend in global FDI.

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