Poverty is on the rise in Bangladesh, along with the number of people living in poverty. An additional eight million people have fallen into poverty over the past four years. The increase is mainly attributed to declining real incomes amid high inflation, a slowdown in employment and other factors.
Meanwhile, around 62 million people live just above the poverty line. Any economic shock, including natural disasters or rising prices, could push them into poverty.
These observations were highlighted in an analysis of Bangladesh's poverty situation in the World Bank’s Bangladesh Development Update report. According to the World Bank, the poverty rate has been climbing for four consecutive years.
Year-by-year breakdown of poverty inflow
Poverty has increased for four consecutive years, along with the number of people living in poverty. According to the World Bank report, the poverty rate stood at 18.7 per cent in 2022. It rose to 18.9 per cent the following year, when another 800,000 people fell into poverty.
In 2024, the poverty rate reached 20.5 per cent, with an additional 3.7 million people falling into poverty that year. In 2025, the rate rose further to more than 21 per cent, as another 1.4 million people became poor. This year, a further 2.1 million people have fallen into poverty, pushing the rate to 22.5 per cent. Income inequality has also increased over the past four years.
The steady decline in poverty over the past two decades began to reverse after 2022. Instead of falling, the poverty rate started to rise, putting increasing pressure on the country’s socioeconomic conditions.
According to the World Bank report, the poverty rate could rise further to 22.9 per cent by the end of the current fiscal year, potentially pushing several hundred thousand more people into poverty.
The bank estimates that around 630,000 net jobs could be created in the next fiscal year. However, this would not be enough to reduce poverty rapidly.
The World Bank also noted that around 62 million people live just above the poverty line and could fall below it following any economic shock.
Natural disasters, including floods, limited employment opportunities and sudden increases in the prices of essential goods such as rice can push many people below the poverty line. Such circumstances also reduce their income opportunities, leaving this large population vulnerable.
Selim Raihan, executive director of the private research organisation South Asian Network on Economic Modeling (SANEM), said the World Bank had presented a worrying picture of poverty in Bangladesh.
According to him, high inflation, particularly pressure from food prices, erosion of real wages, weak private investment and a lack of adequate productive employment are undermining the economic security of low-income and lower-middle-income households.
Selim Raihan pointed out that as most jobs are in the informal sector, a single shock such as job loss, illness or another rise in prices can push many families into poverty.
High inflation, particularly pressure from food prices, erosion of real wages, weak private investment and a lack of adequate productive employment are undermining the economic security of low-income and lower-middle-income households.
In 2001, nearly half of Bangladesh’s population lived below the poverty line, with the poverty rate standing at 48.9 per cent. The country made considerable progress in poverty reduction over the following two decades, bringing the rate down to around 18 per cent in 2022.
However, the steady decline in poverty over the past two decades began to reverse after 2022. Instead of falling, the poverty rate started to rise, putting increasing pressure on the country’s socioeconomic conditions.
How many people are poor
According to the Bangladesh Bureau of Statistics’ (BBS) 2022 census, the country’s population stood at 169.8 million, with 41 million households. Based on that population estimate, at least 47.5 million people are now living below the poverty line. The population has also grown over the past three years. Based on the World Bank’s estimates, the number of people living in poverty is now around 55 million.
The BBS measures poverty based on the cost of meeting basic needs, including food, clothing and shelter. A person is considered poor if they cannot earn enough to buy food providing an average of 2,122 calories a day and cover non-food expenses. However, food prices vary from one area to another.
According to SANEM executive director Selim Raihan, the social protection system is largely limited to providing inadequate assistance after people have already fallen into poverty. Measures to protect vulnerable households before they become poor, as well as social insurance and mechanisms to manage income risks, remain weak.
As a result, the rise in poverty is not merely a temporary crisis but also reflects weaknesses in the quality of economic growth and deep-rooted problems in the labour market, he said.
Raihan believes that policy priorities should go beyond the GDP growth rate to focus on how much employment growth generates, whether it increases real incomes and how effectively it protects vulnerable people.
For several years, domestic and international research organisations have been warning that poverty has increased in Bangladesh. However, the BBS has not conducted a Household Income and Expenditure Survey since 2022. As a result, there are no updated official data on the country’s current poverty situation.
A separate World Bank report published last November projected that the poverty rate could exceed 21 per cent in 2025. The bank has now revised that estimate upwards. The report also warned that climate change-related risks could displace 13 million people by 2050.
The private research organisation Power and Participation Research Centre (PPRC) also published a survey report on poverty in August last year. It estimated that the overall poverty rate in Bangladesh had risen to 27.93 per cent in 2025.
SANEM has also studied the rise in poverty during the Covid pandemic. Its research found that people’s incomes declined and unemployment increased during that period, contributing to a rise in the poverty rate.