Foreign direct investment (FDI) inflows to Bangladesh rose by 4.38% to $2.33bn in 2016 from $2.2bn in 2015, while the inflows to developing Asia shrank by 15% to $443bn during the same year, according to a new report of the United Nations Conference on Trade and Development (UNCTAD) published on Thursday.
The report, titled “World Investment Report 2017: Investment and the Digital Economy,” shows that the global FDI flow declined by 2% to $1.75tn. The reasons behind the fall are weak economic growth and significant policy risk as perceived by the multinational enterprises (MNEs).
The report also says, China, for the first time, was the world’s second-largest investor, as FDI outflows surged by 44% to $183bn in 2016, which is a new high.
According to the UNCTAD report, FDI inflows in South Asia increased by 6% to $54bn in 2016, while flows to India were stagnant at $44bn and Pakistan’s inflows increased by 56% due to significant investment in infrastructure from China in support of the One Belt One Road Initiative.