Bangladesh Economic Update Foreign Direct Investment (FDI)

The current issue of the Bangladesh Economic Update focuses on the magnitude, dynamics, sectoral distribution, and country-wise sources of FDI inflow in the country.Although the amount of FDI is increasing over the years, FDI as a percentage of GDP is following a declining trend after FY 2004-05. The share of FDI in GDP in FY 2010-11 was only 0.70 percent, which is 21 percentage points less than that of the previous fiscal year. If the current trend continues, the inflow of FDI in the current fiscal year might reach at Tk. 60.06 billion and the share of FDI in GDP might be only 0.67 percent, which is 3 percentage points less than that of the previous fiscal year. There is no target of the contribution of FDI in total investment in government’s Medium Term Macroeconomic Framework (MTMF).The share of FDI in total investment was 4.41, 3.73 and 2.85 percent in FY 2008-09, FY 2009-10 and FY 2010-11 respectively.