Foreign direct investment (FDI) inflows to Bangladesh fell by 13.2% in 2024, dropping to $1.27 billion from $1.47 billion a year earlier, according to the World Investment Report 2025, released Thursday by the United Nations Conference on Trade and Development (UNCTAD).

The decline marks the fourth consecutive year of reduced net FDI to the country since 2021. Despite the drop, the report noted that Bangladesh remained one of the top FDI recipients among least developed countries (LDCs), following a stronger performance in 2023.

FDI as a share of gross fixed capital formation fell below 1% last year, reflecting a broader contraction in productive capital inflows. The stock of FDI in Bangladesh stood at $18.3 billion at the end of 2024, up slightly from $17.83 billion a year earlier. The net outflow of FDI from the country was recorded at $7 million.

Greenfield investment announcements also saw a significant decline, falling to $1.75 billion in 2024 from $2.70 billion in 2023. In contrast, South Asia witnessed a 5.8% rise in greenfield FDI, with India accounting for a dominant share. India’s greenfield investments exceeded $100 billion for the first time, reaching $109.52 billion, though its net FDI inflows declined by 2% to $27.55 billion.

Globally, FDI dropped by 11% in 2024, as per adjusted figures excluding conduit flows. UNCTAD warned of a negative outlook for 2025, citing geopolitical tensions, trade fragmentation, and rising financial risks.

The report’s theme this year focused on digital economy investment, estimating its global value to reach $16.5 trillion by 2028.