Bangladesh achieved significant progress in poverty reduction between 2010 and 2022, lifting 25 million people out of poverty and 9 million out of extreme poverty, while improving access to electricity, education, and sanitation. However, since 2016, the pace of poverty reduction has slowed, and economic growth has become less inclusive, according to the Bangladesh Poverty and Equity Assessment 2025.
From 2010 to 2022, extreme poverty fell from 12.2 percent to 5.6 percent, and moderate poverty dropped from 37.1 percent to 18.7 percent. Despite this progress, around 62 million people—approximately one-third of the population—remain vulnerable to shocks such as illness or natural disasters, which could push them back into poverty.
Economic growth after 2016 disproportionately benefited wealthier households, increasing income inequality. Poverty reduction was more pronounced in rural areas, driven largely by agriculture, while urban poverty declined more slowly. By 2022, one in four poor Bangladeshis lived in cities, highlighting the need for inclusive urban development.
Job creation has stagnated, particularly affecting women and youth. One in five young women and one in four educated young women remain unemployed, while half of all youth aged 15 to 29 work in low-paying jobs, indicating a skills mismatch. Stagnation in manufacturing and limited productive employment opportunities outside Dhaka have compounded these challenges.
Migration, both domestic and international, has provided a pathway out of poverty for many, with remittances benefiting poorer households. Yet domestic migrant workers face poor living conditions, and international migration remains accessible mostly to wealthier individuals due to high costs.
Social assistance programs have expanded but remain poorly targeted. In 2022, 35 percent of the richest households received social protection benefits, while half of the poorest families were excluded. Subsidies for electricity, fuel, and fertilizers are also disproportionately benefiting wealthier households.
The report identifies four key policy areas for reducing poverty and inequality: strengthening the foundations for productive jobs, creating more and better employment opportunities for vulnerable populations, enabling markets that work for the poor through modern processing and supportive business regulations, and enhancing resilience via effective fiscal policies and targeted social protection.
World Bank experts emphasize that innovative, pro-poor, climate-resilient, and job-centric policies are essential for Bangladesh to restore inclusive growth. Improving connectivity, generating quality urban employment, supporting pro-poor agricultural value chains, and reforming social protection systems can accelerate poverty reduction and promote shared prosperity across the country.
