According to The World Investment Report (WIR) 2022, Foreign Direct Investment (FDI) in Bangladesh was the highest in 2021, considering the last three years. As a result, Bangladesh has become the second top destination for foreign investors after India.
According to a report published at the United Nations Conference on Trade and Development (UNCTAD) on 9 June, in 2021, there was an investment of USD 2.89 billion in Bangladesh. As a result, 13% growth was achieved that year. Which helped recover from the collapse of 2.56 billion dollars in the previous year due to the global economic catastrophe caused by the COVID-19 pandemic.
The report further states that in 2021, it was possible to get back the FDI from before the pandemic. About 1.6 trillion was invested that year, but that continuity is unlikely to last in 2022.
According to a report titled ‘International Tax Reform and Sustainable Investment’, foreign direct investment in 2021 stood at 21.58 billion dollars.
The report further states that developing countries must receive significant assistance from the international community in dealing with an environment of uncertainties and unwillingness to take risks.
The current investment trend in the region is not entirely positive, said Rebecca Greenspan, Secretary-General of the UNCTAD, in a statement. She said, ‘Large investments are needed in production capacity, the Sustainable Development Goals (SDGs) and climate change mitigation and adaptation.’
UNCTAD’s Global Investment Report further states that the war in Ukraine has dramatically changed the business and investment climate this year. The three-fold crisis in food and fuel has led to higher prices and a crisis in financing.
Other reasons for the catastrophic FDI inflows include the impact of the pandemic, the possibility of further interest rate hikes in major economies, negative outlook in financial markets and a possible recession.
