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DHAKA: The poverty rate in Bangladesh is rising, along with the number of people living in poverty. Around 8 million people have fallen into poverty over the past four years, mainly due to declining real incomes amid high inflation, a slowdown in employment and other economic factors.
Meanwhile, around 62 million people are living just above the poverty line and remain vulnerable to falling into poverty following any economic shock, including natural disasters or a rise in the prices of essential goods.
The findings were revealed in the World Bank’s Bangladesh Development Update which analyses the country’s poverty situation. According to the World Bank, the poverty rate has increased for four consecutive years.
According to the report, Bangladesh’s poverty rate stood at 18.7% in 2022. It rose to 18.9% the following year, when around 800,000 people fell into poverty.
In 2024, the poverty rate increased to 20.5%, with around 3.7 million more people becoming poor. The rate rose further to over 21% in 2025, when another 1.4 million people fell into poverty. This year, around 2.1 million more people have become poor, pushing the poverty rate to 22.5%. Income inequality has also increased over the four-year period.
The World Bank estimates that the poverty rate could rise further to 22.9% by the end of the current fiscal year, potentially pushing several hundred thousand more people below the poverty line. The bank also estimates that around 630,000 net jobs could be created in the next fiscal year. However, this will not be enough to reduce poverty rapidly.
Millions under threat: The World Bank estimates that around 62 million people live just above the poverty line and could fall below it following an economic shock.
Floods and other natural disasters, limited employment opportunities and sudden increases in the prices of essentials such as rice can push many people below the poverty line by reducing their income opportunities. This leaves a huge section of the population vulnerable to poverty.
According to the Bangladesh Bureau of Statistics’ population census, the country had a population of 169.8 million in 2022, with 41 million households.
Based on that population estimate, at least 47.5 million people are currently living below the poverty line. As the population has increased over the past three years, the number of poor people would be around 55 million based on the World Bank’s estimate.
The BBS measures poverty based on the cost of meeting basic needs such as food, clothing and housing. A person is considered poor if they cannot earn enough to buy food providing an average of 2,122 calories per day and meet essential non-food expenses. However, food prices vary from one area to another.
