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Bangladesh Macroeconomy

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Bangladesh Economic Update Foreign Direct Investment (FDI)
February 2012

Bangladesh Economic Update Volume 3, No. 2, February 2012

Acknowledgement: Bangladesh Economic Update is an output of the Economic Policy Unit of the Unnayan Onneshan, a multidisciplinary research centre based in Dhaka, Bangladesh. The report is prepared by a team, under the guidance of Rashed Al Mahmud Titumir and Palash Kanti Das. The team comprises Nibedita Roy and A. Z. M. Saleh.

© Copyright: Unnayan Onneshan-The Innovators The content of this publication may be reproduced for non-commercial purposes with proper citation (please send output to the address mentioned below). Any other form of reproduction, storage in a retrieval system or transmission by any means for commercial purposes, requires permission from the Unnayan Onneshan-The Innovators.

For orders and request please contact: Unnayan Onneshan - The Innovators 16/2, Indira Road, Farmgate Dhaka-1215, Bangladesh Tell: + (880-2) 8158274, 9110636 Fax: + (880-2) 8159135 E-mail: info@unnayan.org Web: www.unnayan.org
Bangladesh Economic Update, February 2012 2|P a g e

Bangladesh Economic Update Vol. 3, No. 2, February 2012 Economic Policy Unit Unnayan Onneshan 1. INTRODUCTION The current issue of the Bangladesh Economic Update focuses on the magnitude, dynamics, sectoral distribution, and countrywise sources of FDI inflow in the country. The flow of foreign direct investment is of utmost importance in the current backdrop of overall slump in investment in the economy in recent days. If FDI falls, it will reduce investment, which in turn will shrink employment generation. These may lead to decline in consumption level and savings will face a downward trend. There would be, as a result, a contagious pressure on the GDP growth of Bangladesh. Foreign Direct Investment (FDI) is considered as one of the crucial ingredients for

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