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FDI in Bangladesh fell over 10% last year

  • Published at 09:03 pm May 4th, 2021
FDI
Photo: BIGSTOCK

Bangladesh received $2.56 billion FDI in 2020

Foreign Direct Investment (FDI) in Bangladesh fell by 10.8% last year owing to the stagnant economy created by the global Covid-19 pandemic.

Bangladesh received $2.56 billion FDI in 2020, down from $2.87 billion a year ago, according to the latest data from the Bangladesh Bank.

No new foreign investment came in last year owing to the global Covid-19 pandemic and the overall private investment was not good in that year, said Zahid Hussain, former lead economist of the World Bank Dhaka office.

“It would not be realistic to expect good investment in the country this year as the second wave of the pandemic has already hit the country's businesses and economy,” he added.

The economist said that the foreign investors would not be confident about investing if Bangladesh fails to manage the ongoing coronavirus situation properly or vaccinate 100% of its people.

"The investment structure and existing rules and regulations should be simplified at this moment so that foreign investors do not lose their confidence in the upcoming days," Zahid further said.

According to the central bank data, equity investment rose 4.8% to $842.29 million, while reinvestment increased by 6.73% to $1,566.12 million last year.

However, intra-company loans fell 74.26% to $155.17 million, the Bangladesh Bank data said.

During the October to December quarter of last year, the country received $827.86 million in FDI, which was 14.97% higher than the same quarter of the previous year.