According to the
@WorldBankGroup, poverty and inequality are rising in
#Bangladesh, driven primarily by a prolonged economic slowdown, persistent inflation, weak labour demand, and energy shortages.
More worryingly, around 62 million people in the country remain vulnerable to falling into poverty following an economic or other adverse shock.
Rising Poverty and Inequality
According to the World Bank’s latest “Bangladesh Development Update” (October 2026), the national poverty rate is estimated to have risen sharply to 22.5% in 2026, from 18.7% in 2022.
Over the same period, the share of the population living in extreme poverty, measured using the international poverty line of $3 per person per day, increased from 5.9% to an estimated 10.1%.
Poverty is estimated to have increased by 1.1 percentage points in FY2026 alone, adding approximately 2.1 million people to the population living below the national poverty line compared with FY2025.
Income inequality has also increased. The Gini coefficient, a standard measure of income inequality, rose by four points over the same period, to 34.9 in FY2026, up from 30.9 in 2022.
Bleak Near-Term Outlook
The World Bank sees little improvement in the near-term outlook. The national poverty rate is projected to rise further to 22.8% in FY2027. Income inequality is also expected to widen, with the Gini coefficient projected to reach 35.6 by FY2028.
Key Drivers
The deterioration in living standards reflects a combination of weak labour demand, persistent inflation, and slower economic growth, which have constrained household incomes and eroded purchasing power.
These pressures have left a large segment of the population highly vulnerable to future economic shocks. According to the World Bank, around 62 million people are just one shock away from falling into poverty.
The WB report also highlights several structural and macroeconomic vulnerabilities, including weaknesses in the financial sector, limited domestic revenue mobilisation, energy shortages, and declining public and private investment.
Taken together, these developments point to a challenging outlook for poverty reduction in Bangladesh, with subdued economic activity, elevated living costs, and weak investment weighing on household welfare and the country’s prospects for inclusive growth.
Report: World Bank, “Bangladesh Development Update”, October 2026.
Link:
documents.worldbank.org/en/p…