Poverty in Bangladesh has increased over the past three years. According to government data, the poverty rate was 18.7 percent in 2022, which has now risen to 27.93 percent in 2025. A study conducted by the Power and Participation Research Centre (PPRC), a private research organization, revealed these findings.

The study showed that around 55 percent of a household’s monthly spending goes toward food. On average, households spend BDT 10,614 per month on food. In addition, they spend BDT 1,822 on education, BDT 1,556 on healthcare, BDT 1,478 on transportation, and BDT 1,089 on housing each month.

These findings were presented on Monday (August 25) at the launch of PPRC’s report, “Economic Dynamics and Mood at Household Level in Mid-2025,” held at the LGED auditorium in Agargaon, Dhaka. The organization’s Executive Chairman, Hossain Zillur Rahman, presented various aspects of the study. The research, conducted in May, was based on responses from 33,207 individuals across 8,067 households.

According to PPRC, extreme poverty has also increased. The study stated that, by government estimates, the extreme poverty rate was 5.6 percent in 2022. In 2025, that rate has climbed to 9.35 percent. Currently, 18 percent of households remain vulnerable to falling into poverty at any time. The organization noted that the country continues to experience the effects of three major crises: COVID-19 (2020–22), inflation, and political and economic uncertainty.

PPRC also noted that although bribery has decreased since August 2024, it has not ended. Before August of last year, 8.54 percent of respondents said they had paid bribes to receive services. After August 2025, this figure dropped to 3.69 percent. The highest bribes were paid in government offices, followed by the police and political leaders.

The study further found that in the past three years, urban household incomes have fallen while expenses have increased. On average, an urban household now earns BDT 40,578 per month but spends BDT 44,961. In 2022, the average monthly income for urban households was BDT 45,578. In contrast, rural households have seen a modest rise in income. A rural household now earns an average of BDT 29,205 and spends BDT 27,162 per month. In 2022, the average rural household income was BDT 26,163. Nationally, the average household income stands at BDT 32,685, while average expenses amount to BDT 32,615.

Dr. Hossain Zillur Rahman, Executive Chairman of PPRC, said, “It is not enough to only look at macroeconomic indicators. We must focus on people’s welfare, the realities of life, and the fair distribution of resources. Bangladesh is now facing an ‘employment emergency.’ Among those counted as employed, 38 percent are actually underemployed (working less than 40 hours a week). Women’s labor force participation is stuck at 26 percent. Nearly half of workers are self-employed, which is both a survival strategy and a symbol of uncertainty. Economic democracy begins when we look at policy through the eyes of the people.”

He further said, “In the current reality, we need to keep in mind five new areas of vulnerability. First, the burden of chronic diseases is steadily rising. We need a new type of social safety net program to address chronic illnesses. Second, female-headed households are at the very bottom of society, and they need special support. Third, the burden of debt is growing, which has become a serious problem. Fourth, food insecurity is increasing. It has not yet become widespread, but it is gradually rising, and that is concerning. Fifth, we have only five years left to achieve the SDGs by overcoming the sanitation crisis, but about 36 percent of people still use non-sanitary toilets. Ensuring safe sanitation has therefore become critically important.”

The study noted that 15 percent of households receive on average about BDT 29,000 a month in remittances, though that is mostly concentrated among high-income families. Among 74 percent, households with young members, 80 percent use smartphones. To cope with rising expenses, families are relying on multiple sources of fuel.

The study found that divisions persist, but resilience is also strong among the wealthiest families, 62 percent of whom are optimistic about the future. However, one-third of the poorest directly expressed despair. Still, more than half overall (54 percent) are cautiously optimistic. Families voiced concerns regarding inflation, unemployment, and weak governance. Yet, regardless of wealth, their aspirations are the same—education, secure jobs, better health care, and a corruption-free society.