Foreign direct investments to Bangladesh fell by 14 per cent to $3.004 billion in 2023 from $3.5 billion in 2022, according to Bangladesh bank (BB) data.
Inflows of equity capital, which refers to investors purchase of shares of an enterprise in a country other than their own, dipped by 31 percent to $705.83 million in 2023 from $1.14 billion in 2022.
On the other hand the total of overseas investment of Bangladesh went to India, which $21.05 million comprising 70.45 percent of total Bangladesh investment in 2023, out of the total $29.88 million investment Bangladeshi investors made abroad.
Of the Bangladesh investment in the year the United Arab Emirates received $8.91 million, while Nepal received $3.52 million, an 11.78% share.
According to BB data overseas FDI by Bangladeshi firms has significantly increased, expanding to more than 22 host countries.
In 2023, more than two-thirds of the outbound foreign direct investment (FDI) by Bangladeshi firms flowed into India.
In 2023, net FDI outflows totalled $29.88 million, marking a decline of 43.2% year-on-year. Net FDI equity capital outflows were $10.66 million in 2023, down from $11.74 million in the previous year.
In 2023, gross FDI inflows were $3.97 billion, recording a decrease of 17.8 percent compared to 2022. The trend has continued in 2024.
The deficit in the financial account stood at $9.25 billion in July-March of 2023-24, according to the BB.
Bangladesh received the highest net FDI from the United Kingdom, which channelled $613.93 million, or 20.4 percent of the total.
Some $366.96 million came from the Netherlands, $314.9 million from the United States, $259.54 million from China, $181.43 million from South Korea, and $176.87 million from Norway.
In 2023, the manufacturing sector attracted the maximum net FDI, bringing in $1.26 billion. The power, gas and petroleum sector came second with an inflow of $581.27 million.
The trade and commerce sector received $551.97 million, the transport, storage and communication sector got $290.11 million, and the services brought in $208.52 million.
FDI stock in Bangladesh was $20.55 billion at the end of 2023, down 5.1 percent from a year prior, BB data showed. It also fell in 2022, the first decline in 19 years.
Meanwhile, net FDI outflows to the United Kingdom fell by $4.35 million and those to Hong Kong-China by $5.78 million.
Considering sector-wise investment, financial intermediaries and mining and quarrying received the lions share of these investments.
