Foreign Direct Investment (FDI) in Bangladesh plummeted by 36% in Q3 2023, reaching $913 million compared to $1.43 billion in the same period last year. The country experienced a net investment drop from $1.1 billion to $670 million. The overall FDI flow for January to September 2023 declined by 24% year-on-year to $2.8 billion. Contributing factors include a volatile exchange rate, political uncertainty, and a 30% appreciation of the US dollar against the taka over two years. A financial account deficit of $5.39 billion in July-November 2023 and global economic turmoil, notably the Russia-Ukraine war, have further impacted Bangladesh’s FDI attractiveness.
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