Bangladesh recorded a sharp rise in net foreign direct investment (FDI) in the first quarter of 2025, according to data from the Bangladesh Bank.

Net FDI stood at $864.63 million between January and March, marking a 114.31% year-on-year increase from $403.44 million during the same period in 2024.

Compared to the previous quarter, the rise was 76.31%, up from $490.40 million in Q4 2024.

The increase came despite a 24.31% decline in reinvested earnings, which fell to $194.71 million from $257.26 million a year ago.

Analysts say this signals investors are favouring new capital and debt infusions over reinvesting profits.

Equity investment flows rose significantly to $304.38 million, up from $188.43 million in Q1 2024. Meanwhile, intra-company loans soared to $626.97 million, nearly two and a half times higher than the $253.80 million recorded a year earlier.

Outflows also increased to $711.53 million during the quarter, compared to $651.19 million a year earlier, reflecting repatriation of profits and other cross-border financial commitments.