A recent survey by the Power and Participation Research Centre (PPRC) has revealed a concerning trend in poverty levels in Bangladesh. The survey indicates that more than one in four individuals in the country are now living in poverty, which marks a significant increase compared to the data reported by the Bangladesh Bureau of Statistics (BBS) in 2022. This shift in statistics prompts a reevaluation of Bangladesh’s development narrative, challenging the perception of the country as a model of economic progress. Despite being hailed as a success story for its steady economic growth in the past, recent events have unveiled the fragility of this growth trajectory.
The discrepancy in poverty rates highlighted in the PPRC survey compared to the earlier BBS figures from 2022 underscores the need to revisit the data that shaped previous optimism. The official poverty rate reported by BBS at 18.7 percent in 2022 appeared misleading, especially given the economic challenges faced during the Covid-19 pandemic recovery period in 2021. Alternative surveys conducted by organizations like South Asian Network on Economic Modeling (SANEM) and BRAC Institute of Governance and Development (BIGD) during 2020-2021 indicated a stark rise in poverty levels, suggesting that the true extent of economic distress may have been underestimated.
Central to the current situation is the issue of jobless growth and the lack of inclusive economic expansion. Despite overall economic growth, the failure to create sufficient high-quality employment opportunities has hindered poverty reduction efforts. The disconnect between GDP growth and poverty alleviation, known as low elasticity of poverty reduction, has exacerbated inequality in Bangladesh. This inequality is evident in sectors like ready-made garments, where workers are pivotal to the country’s economic engine but struggle to earn wages above the poverty line, reflecting a systemic failure in wealth distribution.
Various factors, including the lingering effects of Covid-19, global supply chain disruptions, and persistent inflation, have contributed to the economic challenges faced by Bangladesh from 2022 to 2025. Inadequate macroeconomic management and stagnant private sector investment have further exacerbated the situation, hindering job creation and perpetuating poverty. Rising food prices coupled with stagnant incomes have disproportionately affected urban households, with a significant portion of monthly expenses now allocated to food, leaving little room for other essential needs like healthcare and education.
Although there have been positive developments such as increased remittances and exports following the July 2024 uprising and the formation of an interim government, caution is warranted in interpreting these macro-level improvements. The mismatch between national economic indicators and household realities raises questions about the effectiveness of policies in addressing poverty at the grassroots level. Youth surveys conducted by SANEM in May 2025 reveal deep-seated concerns regarding the transition from education to employment, highlighting systemic issues in job availability, recruitment processes, and institutional integrity.
The evolving narrative of poverty reversal in Bangladesh underscores the importance of inclusive growth and equitable development. Sustainable progress hinges on addressing systemic disparities, fostering economic stability, and ensuring that data accurately reflects the lived experiences of the population. As the country navigates these challenges, it is imperative to prioritize reforms that promote social equity and empower individuals to break free from the cycle of poverty.