The alarming resurgence of poverty

Bangladesh, long celebrated as a model of poverty reduction and steady development, is now grappling with a harsh reversal of fortunes. The Power and Participation Research Centre's (PPRC) latest survey, "Economic Dynamics and Mood at Household Level in Mid-2025," paints a sobering picture of the state of poverty in Bangladesh. Conducted with methodological rigour, the study canvassed 33,207 individuals from 8,067 families across all 64 districts, rendering it both nationally representative and highly insightful. 

Unlike conventional poverty assessments that rely solely on income metrics, this survey integrates socio-economic, political, and psychological dimensions, providing a nuanced understanding of deprivation and vulnerability in contemporary Bangladesh. It is an empirical endeavour that highlights not merely economic deficiency but also the fragility of social structures, governance systems, and human well-being amid compounding crises.

The findings reveal an unprecedented spike in poverty, which now stands at 27.93 per cent, a stark reversal from the 18.7 per cent recorded in 2022. Extreme poverty, defined as severe deprivation in income, nutrition, and access to basic services, has nearly doubled to 9.35 per cent, highlighting the urgent plight of the most marginalised households. 

Furthermore, approximately 18 per cent of families hover precariously just above the poverty line, making them highly susceptible to shocks, whether economic, environmental, or political. These figures underscore a growing precariousness that threatens not only individual households but also the broader social fabric, indicating that the resilience built over decades of development gains is rapidly eroding.

The resurgence of poverty is intricately tied to three converging crises that continue to reverberate across Bangladesh. First, the lingering aftershocks of the COVID-19 pandemic (2020-2022) disrupted livelihoods, education, and social networks, leaving long-lasting scars. Second, relentless inflationary pressures have eroded household purchasing power, particularly affecting essential goods like food, medicine, and housing. Third, ongoing political and economic uncertainties have dampened confidence in governance structures and constrained opportunities for sustainable income generation. 

Urban households, for example, have seen their average monthly income fall from Tk 45,578 in 2022 to Tk 40,578 in 2025, while monthly expenditures surged to Tk 44,961, leaving virtually no margin for savings or financial resilience. Rural incomes have improved marginally, from Tk 26,163 to Tk 29,205, but these gains remain insufficient to match the rise in living costs, with average monthly expenses at Tk 27,162. Across the country, household income barely exceeds expenditure, leaving families perpetually vulnerable to even minor economic shocks.

Expenditure patterns provide further insight into the severity of household vulnerability. Food consumption alone accounts for approximately 55 per cent of monthly spending, with families allocating an average of Tk 10,614 per month to meet their basic nutritional needs. Other essential expenditures are severely constrained: education receives a meagre Tk 1,822 per month, healthcare Tk 1,556, transport Tk 1,478, and housing Tk 1,089. Such constrained budgets compel households to make difficult trade-offs, often sacrificing long-term welfare for immediate survival. Food insecurity manifests acutely among people experiencing poverty, with 12 per cent of households reporting skipped meals in the preceding week and 9 per cent enduring an entire day without food. These indicators signal not only economic stress but also the increasingly severe social and health consequences of prolonged deprivation.

The rural-urban divide is another critical dimension highlighted by the survey. Rural poverty affects 31.6 per cent of households, significantly exceeding the urban rate of 19.7 per cent. Structural vulnerabilities in rural areas, including limited infrastructure, inadequate access to quality education and healthcare, and a higher prevalence of chronic illness, exacerbate household fragility. Over half of all rural households report chronic health conditions, further restricting labour productivity and increasing reliance on informal coping mechanisms. 

Female-headed households are disproportionately affected by poverty, facing systemic barriers in accessing resources, social protection, and economic opportunities. Urban poor populations, particularly those living in congested slums, contend with inadequate sanitation, insecure employment, and deteriorating housing conditions, reflecting an environment of concentrated deprivation.

Income inequality in Bangladesh has widened considerably over the past three years, with the national expenditure Gini coefficient rising from 0.334 in 2022 to 0.436 in 2025. Urban inequality is even more pronounced, with a Gini coefficient of 0.532, illustrating how economic growth has disproportionately favoured wealthier segments, while leaving poor and middle-class households increasingly vulnerable. 

Many middle-class families, once considered economically secure, now face rising household debt and diminishing savings as costs escalate, eroding their financial stability and social mobility. This widening inequality underscores the urgent need to reorient development strategies toward inclusive growth that addresses both wealth concentration and widespread vulnerability.

Employment trends further highlight the structural fragility of household economies. Only slightly over half of adults report engagement in some form of work, with 37.7 per cent being underemployed, working fewer than 40 hours per week. Female labour force participation stagnates at a low 25.5 per cent, with 65.5 per cent of women underemployed, reflecting persistent gender disparities in economic opportunities and empowerment.

The informal sector remains a dominant source of employment, with nearly half of all workers self-employed. While informal employment demonstrates resilience, it also conveys vulnerability, as these workers lack formal protections, social security, and benefits, leaving them exposed to economic shocks. The precarious nature of employment amplifies the vulnerability of households, particularly when compounded with rising costs, debt burdens, and inadequate access to social safety nets.

Governance and institutional challenges compound household vulnerability. Despite some reductions in reported bribery payments since August 2024, systemic harassment and institutional dysfunction continue to be pervasive. Nearly half of the households reports facing harassment ("hoirani") when accessing essential services, including healthcare, markets, education, and government offices.

Police officers receive the largest share of bribes, approximately 39.4 per cent, followed by political actors, highlighting how corruption disproportionately burdens the most vulnerable populations. Such governance deficits erode trust in public institutions and inhibit access to essential services, deepening exclusion and perpetuating cycles of poverty.

PPRC Chairman Dr Hossain Zillur Rahman emphasises that national economic strategies, which focus primarily on macro indicators such as GDP growth, fail to capture the lived realities of ordinary Bangladeshis. He argues for a recalibration toward a "people's lens," prioritising equity, inclusion, and well-being.

The survey identifies several areas requiring urgent attention: the rising burden of chronic illness, growing household debt, food insecurity, the precariousness of female-headed households, and persistent sanitation gaps, with 36 per cent of the population still relying on unsafe toilets. Dr. Rahman emphasises that the employment crisis constitutes a national emergency, necessitating immediate interventions to alleviate joblessness, underemployment, and labour-market inequities.

Bangladesh's current poverty crisis cannot be reduced to mere income deprivation; it is multidimensional, encompassing vulnerabilities in health, education, social protection, and governance. The financial precariousness of households leaves little room to absorb shocks, invest in future opportunities, or secure basic dignity. The PPRC survey's multidimensional framework captures these interlocking vulnerabilities, offering a comprehensive lens through which policymakers can design integrated responses. 

Immediate relief measures, such as emergency assistance, targeted food and nutrition programs, and education grants, are critical. However, medium-term reforms in governance transparency, social protection coverage, and participatory policymaking are equally necessary. Longer-term strategies must focus on structural reforms that enhance household economic monitoring, equitable resource distribution, and sustainable employment generation.

The resurgence of poverty, as documented by the PPRC, reflects broader socio-economic trends that extend beyond individual households. Rising extreme poverty, food insecurity, gender disparities, rural-urban divides, and labour market fragility collectively point to a society at a critical crossroads. 

The study's methodology and national scope make it a definitive source for understanding these dynamics, underscoring that incremental or piecemeal solutions are insufficient. Addressing poverty in Bangladesh requires a holistic approach that integrates social, economic, and governance interventions, all centred on the realities and needs of ordinary citizens.

Ultimately, the PPRC survey is not merely a statistical exercise; it is a clarion call for action. It demonstrates that poverty is not an abstract figure but a lived experience, intertwined with dignity, opportunity, and human potential. 

The findings demand that policymakers, civil society, and development actors urgently shift their focus from growth-centric metrics to inclusive development frameworks that ensure resilience, protect vulnerable households, and rebuild social trust. Without such integrated action, the remarkable development gains achieved in recent decades risk being undone, leaving millions exposed to deepening deprivation and the erosion of basic human security.

Bangladesh stands at a pivotal juncture where choices made today will determine whether the country can reverse the recent surge in poverty and inequality or continue down a trajectory of vulnerability and fragility. 

The PPRC survey offers both a warning and a roadmap: urgent, multidimensional interventions, grounded in the lived realities of ordinary citizens, are essential to safeguard the nation's social, economic, and human capital. By addressing immediate needs while laying the foundations for long-term resilience, Bangladesh can move toward a more equitable, secure, and prosperous future for all.

Dr Matiur Rahman is a researcher and development professional.

matiurrahman588@gmail.com