Foreign investment decreased by 14% in 2023: UNCTAD

Economic Tag: Foreign Aid

During the COVID-19 pandemic, global foreign direct investment (FDI) decreased, impacting Bangladesh as well. From 2019 to 2021, Bangladesh experienced a decline in FDI. Economic recovery in 2022 led to an increase in FDI in Bangladesh, but it fell again by 13.67% in 2023. According to UNCTAD’s 2024 World Investment Report, global FDI fell by 2% in 2023 due to economic slowdowns and geopolitical tensions. Bangladesh received $3.04 billion in FDI in 2023, down from $3.48 billion in 2022. Despite this, announcements for new projects increased, indicating potential future growth. Bangladesh remains among the top five LDCs for FDI, though its FDI inflows decreased while overall FDI to LDCs increased by 17%. In South Asia, FDI fell by 37%, with significant drops in India and Pakistan but increases in Nepal and the Maldives. Investment in infrastructure and health sectors in developing countries rose.

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