WorldPosted at: Oct 8 2026 8:41PM

Dhaka, Oct 8 (UNI) Poverty and inequality are rising steadily in Bangladesh as the country grapples with prolonged economic slowdown, persistent inflation, weak labour demand and energy shortages, and weighs on household incomes, undoing decades of hard-won economic progress, according to the World Bank Group.
The World Bank estimates that the national poverty rate rose to 22.5% in 2026 from 18.7% in 2022, with around eight million additional people falling into poverty over the past four years.
An estimated 2.1 million people were pushed below the national poverty line in FY2026 alone.
Extreme poverty, measured against the international poverty line of $3 per person per day, increased from 5.9% in 2022 to an estimated 10.1% in 2026. Income inequality also widened, with the Gini coefficient rising from 30.9 to 34.9 over the same period.
The World Bank's latest 'Bangladesh Development Update', published in October 2026, attributes the deterioration in living standards largely to declining real incomes, high inflation, weaker employment growth and sluggish economic growth.
The poverty rate rose to 20.5% in 2024, with about 3.7 million people falling into poverty that year, and further rose in 2025 when another 1.4 million people were estimated to have become poor. By 2026, the rate reached to 22.5%.
Notably, the Awami League government led by Sheikh Hasina was ousted after 15 years in power in August 2024 by a so-called student unrest, to be followed by the Mohammed Yunus-led interim government, that ruled till the February 2026 general elections brought the BNP regime led by Tarique Rahman to power.
According to the World Bank, the scope for improvement looks bleak even in the near future, with the bank expecting little improvement, projecting the poverty rate to rise to 22.8% in FY2027. The Gini coefficient is projected to reach 35.6 by FY2028.
Bangladesh had made significant progress in reducing poverty over the two decades before 2022, when Sheikh Hasina was mostly in power. The poverty rate fell from 48.9% in 2001 to around 18% in 2022, but that trend has since reversed.
The World Bank estimates that around 55 million people are now living below the national poverty line. About 62 million more remain vulnerable to falling into poverty following an economic shock or other adverse event.
Bangladesh's poverty measurement is based on the cost of meeting basic needs, including food, clothing and shelter. A person is considered poor if their income is insufficient to afford food providing an average of 2,122 calories a day along with essential non-food expenses.
The World Bank said Bangladesh's social protection system remains largely focused on providing assistance after people have fallen into poverty, while measures designed to protect vulnerable households before they become poor, along with social insurance and income-risk mechanisms, remain weak.
The bank estimates that around 630,000 net jobs could be created in the next fiscal year, but said this would not be enough to bring down poverty rapidly.
Structural weaknesses in the financial sector, limited domestic revenue mobilisation, energy shortages and declining public and private investment are also weighing on the economy.
Natural disasters such as floods, limited employment opportunities and sudden increases in the prices of essentials including rice can further push vulnerable households below the poverty line while reducing their income opportunities.
The World Bank has also warned that climate-related risks could displace 13 million people in Bangladesh by 2050.
The findings follow a separate survey by the Power and Participation Research Centre, which estimated Bangladesh's overall poverty rate at 27.93% in 2025. The World Bank had previously projected that the poverty rate could exceed 21% that year but has since revised its estimate upwards.
Taking all the factors together, poverty reduction in Bangladesh is an increasingly complex scenario with continued pressure on household welfare amid subdued economic activity, high living costs and weak investment complicating efforts to reduce poverty and improve inclusive growth.
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