Expatriates send money to Bangladesh for investment in trade and property businesses. Bangladesh’s recent economic growth journey has been a success, at least so far. The country has a nearly unrivalled growth rate, with GDP forecast to reach 7% in 2020, putting it on track to overtake India in terms of GDP per capita by 2030. As per the World Bank, poverty has decreased steadily from over 40% in 1991 to about 14% in 2016/17. Bangladesh, the world’s largest least developed country (LDC) in terms of population and economic size, aims to graduate from the UN’s LDC group in 2024.
According to the United Nations Conference on Trade and Development, it earned the highest amount of foreign direct investment (FDI) ever last year, totalling $3.61 billion. This dramatic increase reflects the domestic market’s untapped potential as well as Bangladesh’s lack of foreign direct investment (FDI) until recently.
Why Investors Prefer Countries Like Bangladesh For Investment?
The defining characteristic of today’s world is economic dominance. We have no choice but to evolve economically in order to survive by international money transfers to Bangladesh and Foreign Direct Investments. For the least developed countries (LDCs), foreign investment is recognized as a critical component of economic development, and for Bangladesh, as one of the LDCs with a domestic savings rate that is inadequate for investment after meeting basic needs, the value of the foreign investment is unavoidable.
Owing to high labour costs and other factors, investing in a developing country is no longer feasible. As a result, global investors are looking for opportunities to invest in developing countries or least developed countries (LDCs) to maximize their returns. However, as an LDC, we still have a long way to go in attracting such investments in our own best interests. Foreign direct investment (FDI) would help us create jobs, improve labour productivity, promote online money transfer to Bangladesh from abroad, and grow new exportable sectors.
What Has Analyst To Predict About FDI Of Bangladesh In Coming Years?
Unfortunately, foreign investment in Bangladesh is insufficient. Bangladesh received just 0.05 percent foreign investment in 2003, according to the UNCTAD, compared to 0.9 percent in India, 0.52 percent in Vietnam, 10.2 percent in Indonesia, and 70% in China. The energy sector (mineral resources/mining) has attracted the majority of foreign investment in Bangladesh. International investment in the manufacturing sector is relatively low. This may be because Bangladesh has a limited domestic market and is unable to consume high-quality products due to its low purchasing power.
Bangladesh FDI is expected to reach £1790.88 million in 2021 and £2061.44 million in 2022, according to our econometric models. Send money to Bangladesh online is increasing due to the country’s digital revolution, which indirectly increases FDI.