Written by The Banking Post
Dhaka, July 12 — Bangladesh registered a sharp increase in net foreign direct investment (FDI) in the first quarter of 2025, with total inflows soaring 114.31% year-on-year, official data from the Bangladesh Bank confirms.
Between January and March, net FDI rose to $864.63 million, compared to $403.44 million during the same period in 2024. The boost was largely driven by significant growth in intra-company loans and equity investments, despite a fall in reinvested earnings.
Intra-company loans totaled $626.97 million, almost two and a half times the $253.80 million recorded a year earlier. Equity investment inflows also grew sharply, reaching $304.38 million, up from $188.43 million in Q1 of 2024.
Meanwhile, reinvested earnings fell to $194.71 million, a decline of over 24% year-on-year. Outflows also increased, hitting $711.53 million in Q1 2025 compared to $651.19 million in Q1 2024.
Analysts say the overall growth reflects fresh confidence in Bangladesh’s investment climate, particularly in sectors like manufacturing, telecom, and finance. However, they caution that rising outflows and falling reinvestment levels may warrant closer monitoring of investor sentiment.
Further details on sector-wise investment breakdowns and regional comparisons are expected in the central bank’s next quarterly report.
