Bangladesh

Bangladesh Foreign Direct Investment (USD bn)

The economy appears to have weakened so far in FY 2023 (July 2022–June 2023). The chief culprit has been weakness in the global economy; merchandise exports expanded 10% in July–January compared to 34% in FY 2022. That said, in the same period, remittances remained relatively robust, rising 4% year on year (FY 2022: minus 15%), largely due to the global reopening from Covid-19. Meanwhile, higher energy prices have further hurt economic growth, with a hike in fuel prices in August likely denting private consumption. In addition, the weakness in the external sector has hit international reserves. This led the government to secure a financing agreement from the IMF in November, with final approval from the Fund’s board granted on 30 January for a USD 4.7 billion loan. This development means that Bangladesh, unlike its neighbors Pakistan and Sri Lanka, is highly unlikely to suffer a balance of payments crisis for the foreseeable future.

Bangladesh Foreign Direct Investment (USD bn) Data

2017 2018 2019 2020 2021
Foreign Direct Investment (USD bn) 2.2 3.6 2.9 2.6 2.9

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