Bangladesh sees dip in FDI inflows amid global economic uncertainty

Bangladesh witnessed a decline in Foreign Direct Investment (FDI) inflows during the fiscal year 2024, reflecting challenges posed by global economic uncertainties and domestic constraints.

According to Bangladesh Bank data released on Wednesday, net FDI inflows stood at US$ 1,468.17 million in the 2024 fiscal year, marking a decrease of $141.60 million or 8.80 per cent compared to the fiscal year 2023.

The decline highlights concerns about the investment climate as the country navigates shifting economic landscapes.

A major component of FDI, net equity capital inflows, also recorded a drop.

In the fiscal year 2024, equity inflows totalled $667.50 million, compared to $709.93 million in 2023. This represents a decline of $42.43 million, or 5.98 per cent, indicating subdued investor confidence and possibly reduced expansion plans by foreign companies.

Despite the contraction in inflows, Bangladesh's FDI stock experienced modest growth.

As of June 2024, the total FDI stock reached $17,543.08 million, an increase of 1.49 per cent over the previous year's level. This suggests that while new investments have slowed, existing foreign investments in the country remain relatively stable.

jasimharoon@yahoo.com