Net foreign direct investment (FDI) inflow in Bangladesh decreased by 8.37% year-on-year in the first nine months of FY24, falling to $2.21 billion from $2.41 billion in the same period of FY23.
The decline is attributed to several factors, including exchange rate volatility, difficulties in profit repatriation due to a dollar shortage, and a negative outlook on the country’s credit rating by international agencies. The exchange rate for the dollar rose from Tk 108.40 in July 2023 to Tk 110 by March 2024, with banks reporting rates as high as Tk115-116, discouraging new investments.
Additionally, credit rating downgrades by S&P and Moody’s have further eroded investor confidence. Economist Mustafa K Mujeri noted that Bangladesh’s challenging macroeconomic situation has likely led investors to consider alternative investment destinations.
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