Bangladesh has made notable progress in reducing poverty over the past decade, according to a new report from the World Bank. The Bangladesh Poverty and Equity Assessment 2025 shows that between 2010 and 2022, the country lifted 25 million people out of poverty and another 9 million out of extreme poverty. Access to basic services such as electricity, education, and sanitation also improved during this period.
Despite these achievements, the report highlights that since 2016, the pace of poverty reduction has slowed and economic growth has become less inclusive. Income inequality increased as wealthier families benefited more from income growth. Rural areas experienced greater reductions in poverty, largely driven by agriculture, while urban areas saw slower progress. By 2022, one in four poor people in Bangladesh lived in a city.
Jean Pesme, World Bank Division Director for Bangladesh and Bhutan, stated: “For years, Bangladesh has been known for its success in poverty reduction. But with a changing global context, severe climate vulnerabilities, and a slower rate of job creation, labor income has weakened. A business-as-usual approach will not accelerate poverty reduction. The fastest path to reducing poverty and ensuring the dignity of people is through job creation, particularly for youth, women, and vulnerable populations. A pro-poor, climate-resilient, and job-centric strategy will be essential to ensure inclusive and sustainable growth.”
The report notes that job creation in manufacturing has stagnated and shifted toward less productive sectors. This trend has affected women and young people most significantly; one in five young women remains unemployed while one in four educated young women does not have a job. In urban centers outside Dhaka, job opportunities have not grown significantly and labor force participation among women has declined. Half of all youth aged 15 to 29 are employed in low-paying jobs—indicating a mismatch between skills and available employment.
Migration continues to be an important route out of poverty for many Bangladeshis. Remittances have played a key role in supporting poorer households. However, domestic migrants often face difficult living conditions in crowded urban settlements. International migration is generally limited to those who can afford high costs.
Social assistance programs have expanded but remain inefficiently targeted; about 35 percent of benefits go to the richest families while half of the poorest do not receive support at all. Subsidies for electricity, fuel, and fertilizer disproportionately benefit wealthier households.
The World Bank’s assessment recommends four main policy actions: strengthening foundations for productive jobs; creating more quality jobs for disadvantaged groups; investing in modern processing industries alongside supportive regulations; and improving social protection through better targeting.
Sergio Olivieri, World Bank Senior Economist and co-author of the report said: “Bangladesh has reduced regional disparities, particularly the East–West divide. But climate risks are exacerbating spatial disparities, particularly between rural and urban areas. Our poverty assessment shows that by adopting innovative policies, Bangladesh can restore and accelerate the pace of reducing poverty and boosting shared prosperity by improving connectivity, creating quality urban jobs, facilitating pro-poor value chains in agriculture, and making social protection effective.”