The report said poverty is increasing due to high inflation and other factors. The poverty rate was 18.7 percent in 2022, which will increase to 21.4 percent in 2025. In 2025, an additional 1.4 million people could fall into poverty.
The World Bank further notes that before the Middle East war, it was estimated that 1.7 million people would rise above the poverty line this year. However, due to the war only 500,000 people can do so. This means that about 12 lakh people will live in poverty this year. Without war, the poverty rate could fall to 19.3 percent by 2028.
The report identifies several causes of rising poverty, including high inflation, low wages and slow employment growth. It also predicts increasing inequality. According to the World Bank, the Iran war will cause poverty to fall by only 0.7 percentage points this year, whereas it normally falls by more than 1 percentage point annually.
World Bank Division Director (Bangladesh and Bhutan) Jean Pesme said Bangladesh is not achieving the expected revenue collection. Trade is being affected by reciprocating tariffs from the United States. He also said that the pace of poverty reduction has slowed in recent years and stressed the need to improve the investment climate for decent job creation.
Jean Pesme said that reform initiatives taken in the past should continue, although they will be challenging. He stressed the need for quick short-term measures after assessing various aspects of the Middle East crisis.