Foreign investment in Bangladesh drops 23.56% in first nine months

Net foreign direct investment (FDI) in Bangladesh declined by 23.56 per cent in the first nine months of the current fiscal year, according to updated data from the Bangladesh Bank.

Between July and March of the 2025–26 fiscal year, net FDI inflows stood at $1.06 billion, down from $1.31 billion in the same period of the previous fiscal year.

The central bank data shows that the sharpest decline came in the January–March quarter, when net FDI fell to $199 million, a 74.74 per cent drop compared to $788 million in the same quarter of the previous year.

Officials said the contraction in the third quarter significantly contributed to the overall nine-month decline.

In contrast, Bangladesh had recorded stronger FDI performance in earlier years. Net FDI stood at $1.71 billion in FY2024–25, reflecting a 20.14 percent year-on-year increase at that time, while FY2023–24 saw inflows of $1.425 billion.

Net FDI represents the amount of foreign investment remaining after repatriation of profits by foreign companies operating in the country.

Despite the nine-month decline, Bangladesh Bank data released on May 5 showed that net FDI for the 2025 calendar year rose to $1.77 billion, compared to $1.27 billion in 2024 — an increase of 36.36 per cent.

The central bank noted that fluctuations in quarterly inflows and profit repatriation continue to significantly influence overall FDI trends in the country.