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FDI Inflows In Q1 2023 Drop 30% - BIZDATA INSIGHTS

FDI Inflows in Q1 2023 Drop 30%

Economic Tag: FDI

Bangladesh’s net FDI inflow in Q1 2023 fell by about 30%, reaching $626.47 million, compared to $888.48 million in the same period 2022. Reinvested earnings dropped by 13.58%, while inter-company loans increased by 272.72% year-on-year. The non-EPZ area received the highest inflow of $541.49 million. Textiles and apparel were the top foreign investment-earning sector with $143.81 million, followed by banking ($93.43 million), telecommunications ($71.98 million), gas and petroleum ($55.28 million), and trading ($34.46 million). The decline in FDI is attributed to the drop in reinvestment and increased loan repayments by foreign companies operating in Bangladesh. Economists urge authorities to monitor the sources of international investment to address future challenges. The gross volume of forex reserves was $29.85 billion, while the net volume under the IMF’s BPM6 manual was $23.45 billion as of July 19, 2023.

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