Bangladesh has previously achieved notable success in reducing poverty, but progress has slowed significantly since 2016. Although economic growth continues, it has been less inclusive, benefiting the wealthier segments of society more. According to the World Bank’s “Poverty and Inequality Assessment 2025,” the creation of new employment has almost stagnated, forcing nearly half of young workers into low-wage jobs.
The report notes that from 2010 to 2022, extreme poverty fell from 12.2% to 5.6%, and moderate poverty declined from 37.1% to 18.7%. However, approximately 62 million people—around one-third of the population—remain at risk of falling below the poverty line due to illness, natural disasters, or other shocks. The gains from growth have largely favoured the rich, leading to rising income inequality.
Rural, agriculture-dependent regions have led poverty reduction, while urban areas have seen slower progress. Employment in productive sectors has nearly stalled, pushing work into less productive sectors that disproportionately affect women and young people. One in five women is unemployed, and one in four educated women cannot find work.
For many Bangladeshis, domestic and international migration remains a key pathway out of poverty. Remittances benefit poorer families comparatively more, but urban migrant workers often face harsh, low-quality conditions. Social protection coverage has expanded but suffers from inefficiency, and beneficiary targeting remains inadequate; in 2022, 35% of social protection beneficiaries were wealthy, while half of the ultra-poor received no benefits.
The report outlines four key policy measures to reduce poverty and inequality: expanding employment in productive sectors, creating decent jobs for vulnerable populations, investing in processed industries to establish poor-friendly markets, and strengthening fiscal policy and targeted social protection to build resilience. Senior World Bank economist Sergio Olivieri highlights that with innovative policies, improved connectivity, quality urban employment, pro-poor agricultural value chains, and effective social protection, Bangladesh can accelerate poverty reduction and ensure inclusive prosperity.
GLIVE/TSN