Bangladesh to receive 600-million dollars FDI a year: report

Bangladesh will rank 77th among the 82 countries in the globe in terms of possible foreign direct investment (FDI) inflow during the 2006-2010 period, a report said.

The London-based Economist Intelligence Unit (EIU) in its report on "World investment prospects to 2010: Boom or backlash?" showed that Bangladesh will receive 600 million U.S. dollars FDI on an average a year during the period between 2006 and 2010, Bangladeshi local daily The Financial Express reported Sunday.

The EIU report, released on last Sept. 5, said that Bangladesh's 600-million dollars FDI accounts for only 0.05 percent of the world's total FDI share of 1.16 trillion dollars.

As per FDI projection in the report, Bangladesh is in the third position among the South Asian nations. India and Pakistan securing 19th and 64th position respectively have left Bangladesh behind them in this subcontinent while Sri Lanka attaining 81st position has been placed behind Bangladesh.

"India will receive 11.6 billion dollars FDI during the 2006- 2010 period on an annual average, which is 0.9 percent of total world FDI inflow, while Pakistan will receive 1.6 billion dollars, which is 0.13 percent of total FDI inflow, and Sri Lanka will receive 300 million dollars, which is 0.02 percent of total FDI inflow in the World," the report said.

The EIU report put the United States on top of the position as the investment recipient among the 82 countries in the world, receiving 298.1 billion dollars on an average per year, which is 23.21 percent of total FDI inflow.

It forecast the total global FDI inflows in 2006 at 1.16- trillion, which is 22 percent higher than that of 2005.

Meanwhile, the report, in terms of per head FDI inflow during 2006-2010 period, showed that Bangladesh will occupy 81st position while attaining 75th position in terms of GDP (gross domestic product) percentage among the 82 countries.

The EIU report said, "After 2006, global FDI flows will continue to rise, but the rate of growth is expected to slow. Between 2006 and 2010, global FDI inflows are projected to grow at an annual average rate of 8.0 per cent. The global FDI flows will exceed the rate of growth in world output, but, unlike in the pre- 2000 period, it is expected to lag slightly behind the annual average rate of growth in world trade in 2006-2010."

Source: Xinhua