Q1 FY25 FDI inflow into Bangladesh down 71% YoY; lowest in 11 years

The drop was attributed to political instability and economic uncertainty related to the student-led mass upsurge and subsequent fall of the Sheikh Hasina-led government during the period.

Central bank officials feel lingering economic instability, including currency devaluation, and deteriorating credit ratings from international agencies might have dampened investor confidence in the country, according to domestic media reports.

Reinvested earnings accounted for $73 million of the net FDI in Q1 FY25. Reinvested earnings constituted 70 per cent of the net FDI inflow in the quarter, meaning a significant portion of the country's FDI inflow came from returns generated by previous foreign investments being reinvested.

Additionally, $77 million of FDI came as equity capital, while intra-company loans decreased by $45 million.

ALCHEMPro News Desk (DS)