Bangladesh is witnessing one of its most troubling reversals in poverty in over a decade, and recent assessments emphasise the scale of the crisis. According to the World Bank's Bangladesh Poverty and Equity Assessment 2025, nearly 20 lakh people have fallen into poverty this year, pushing the rate to 21.2 percent, while more than 30 lakh slipped below the line last year. The country's total poor population has now reached around 3.6 crore, driven by job losses, soaring inflation, and declining household consumption. Despite repeated policy assurances, scattered relief measures, and incremental social assistance, the slide continues. The WB found that between 2010 and 2022, the poverty-reduction elasticity of growth fell to 0.9; in other words the country's economic growth was less effective in reducing poverty, reflecting weakened governance, shrinking labour opportunities, and a growth model increasingly unable to shield vulnerable households.
Labour market data shows that Bangladesh lost nearly 20 lakh jobs between 2023 and 2024, with another eight lakhs expected to vanish this year, with women and young people being the hardest hit. Most new jobs are concentrated in low-productivity agriculture, signalling stagnation in industrial and service-sector dynamism. The WB report revealed entrenched failures in the social protection system, with only half of the poorest 20 percent of households receiving benefits, while the richest quintile continues to benefit from various subsidies—evidence of chronic mistargeting and political leakage. The survey further highlights that 6.2 crore people now hover just above the poverty line, vulnerable to slipping below it due to illness, shocks, or minor income disruptions.
Nationwide, poverty dynamics is increasingly visible in altered consumption patterns, livelihood adjustments, and falling living standards. Real wages, particularly in rural areas, have stagnated or fallen even as food prices remain elevated. Rising rural poverty is eroding household resiliency as families are reducing meals, borrowing at high interest, or selling productive assets to cope. Stagnation in job creation also risks undermining Bangladesh's hard-won progress in women's economic participation.
The persistence of this crisis reflects a failure of coordination, accountability, and long-term planning. Budgetary constraints, administrative delays, and fragmented policymaking are no longer sufficient explanations. Job creation strategies must be revamped, market access improved for rural households, skills development strengthened and transparency ensured in welfare programmes. Bangladesh has overcome adversity before, but the current trajectory demands decisive, coordinated, and accountable action. Without it, the poverty reversal could become entrenched, undermining national progress for years to come.
