Bangladesh receives relatively high FDI: Unctad report

Bangladesh received ‘relatively high’ foreign direct investment (FDI) in the first half of 2012 when the global investment inflows declined by 8.%, a Unctad report said.
The “Global Investment Trend Monitor” of the United Nations’ Conference on Trade and Development (Unctad), released on October 23, shows about $430mn FDI inflow to Bangladesh in the first six month of 2012, which was only 2.04% lower than  the investment in 2011.
The rate of FDI fall in Bangladesh was much lower than the regional falling trend. South Asia during this period suffered 40.1% decline when the investment inflow fell by 42.8% to India.
In the first half of 2012, global FDI inflows reached $668bn, a decline of $61bn or 8% compared with the same period of 2011, as the economic recovery suffered new setbacks in the second quarter of 2012.
The $61bn fall was mainly caused by a decline of $37bn in inflows to the United States and a $23bn fall in inflows to BRIC countries –Brazil, Russian Federation, India and China.
The declines were caused by steep falls in both greenfield investment projects (40%) and cross-border M&A (merger and accusation) transactions (60%), which are also visible in the reduced importance of the equity component of FDI inflows.
Developing countries for the first time absorbed half of global FDI inflows due to the steep fall in flows to the United States and a moderate decline in flows to the EU.