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Foreign direct investment (FDI) in Bangladesh increased by 20.16% to $3.48 billion in 2022, compared to $2.89 billion in 2021. However, outward FDI from Bangladesh declined by 42.7% to $53 million in 2022. In South Asia, FDI flows to India rose by 10% to $49 billion, making it the third-largest host country for greenfield project announcements.
FDI in the least developed countries (LDCs) decreased by 16% to $22 billion in 2022. The top five FDI recipients were Ethiopia, Cambodia, Bangladesh, Senegal, and Mozambique. Legal and institutional reforms to promote FDI were adopted by several countries, including Bangladesh. Developing countries in Asia received $662 billion in FDI in 2022, with China, Singapore, Hong Kong, India, and the United Arab Emirates being the main recipients. Global FDI declined by 12% in 2022 to $1.3 trillion due to lower financial flows in developed countries. The global environment for cross-border investment remains challenging in 2023 due to geopolitical tensions and financial sector turmoil.
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