Wednesday, September 27, 2017

Foreign direct investment rises in Bangladesh

  • Chief Economic Correspondent, bdnews24.com
    Published: 2017-07-11 22:31:02 BdST

bdnews24

Foreign direct investment or FDI has increased in Bangladesh, particularly in energy, telecom and stockmarket.

Bangladesh received $2.65 billion in gross inflows of FDI between July 2016 and May 2017, whereas the amount was $2.33 billion in the same period of the previous year.

The net inflow of FDI jumped 27.75 percent to $1.62 billion in the July-May period, according to data released by Bangladesh Bank on its website. Portfolio investment in the stockmarket jumped about six times to $324 million.

Finance Minister AMA Muhith has mentioned “political stability” as a factor behind the growth.

In his closing speech on budget in parliament on Jun 28, while discussing FDI, he said: “A stable political situation has created a positive impact.”

Trade deficit widened to $9.2 billion in the 11 months to May from $6.45 billion a year ago.

Bangladesh has imported goods worth $40.25 billion between July 2016 and May 2017, which is about 11 percent higher than in the same period of fiscal 2015-16.

On the other hand, exports rose 3.8 percent year-on-year to $31.05 billion in the July-May period.