In yet another endorsement of its remarkable economic growth story, Bangladesh has now received a pat on the back from the US, which said the country would remain most resilient and continue to attract foreign direct investment (FDI) despite the Covid-induced economic downturn.

The US, which is the largest investor in Bangladesh, cited the country’s sustained economic growth over the past decade alongside a large population of the young and hard-working workforce and strategic location between the vast South and Southeast Asian markets as positive factors, Prothom Alo reported.

The remarks were part of the US state department’s  2021 Investment Climate Statements released on Wednesday.

Economic analysts and Bangladesh watchers have been praising the country's economic achievements for some time citing the economic indicators.

In 2019, the real Gross Domestic Product (value of total production of goods and services) growth rate in Bangladesh was 7.8 percent, the highest in South Asia. In fact, since 2015, the real GDP growth of Bangladesh has hovered around 7 percent.

The US report rated Dhaka’s efforts as promising but said implementation was yet to materialize, as it analyzed the investment climate in more than 170 global economies that are current or potential markets for US companies.

The US report, however, pointed out that inadequate infrastructure, limited financing instruments, bureaucratic delays, lax enforcement of labor laws, and corruption continued to hinder foreign investment.

Slow adoption of alternative dispute resolution mechanisms and sluggish judicial processes impede the enforcement of contracts and the resolution of business disputes, as per the report.

Buoyed by a young workforce and a growing consumer base, Bangladesh has enjoyed consistent annual GDP growth of more than six percent over the past decade, except for the Covid-induced economic slowdown in 2020, the report mentions.

Bangladesh's FDI stock was USD 16.9 billion in 2019, with the US being the top investing country with USD 3.5 billion in accumulated investments.

(SAM)