Stagnant incomes that fail to cover basic monthly expenses, medical emergencies triggering financial crises, and rampant inequality – the top 20% makes at least Tk 50,000 more than the rest – were among the findings of a major study of 8,067 families across 64 districts in the first half of 2025.
The study, titled "State of the real economy: Household realities and policy options towards strengthening economic democracy", was initiated by the finance ministry and conducted by the Power and Participation Research Centre (PPRC).
It found that, since 2022, around 10% of Bangladeshis have been living at or below the poverty line, and 18% in the danger zone, hovering slightly over the poverty line. Another 17.97% are in the vulnerable but non-poor group. Only 54% were classified as non-poor.
"Merely looking at macroeconomic indicators is not enough; we need to focus on the people's welfare, the realities of their lives, and on the just distribution of the wealth," PPRC Executive Director Hossain Zillur Rahman said while presenting the findings at an event at Agargaon's LGED auditorium on Monday.
Inequality was visible when looking at the results.
Of the surveyed households, 40% had more than one earner. Around 83% have at least one member aged 15-35, and 35% had a child in primary education. Nearly a quarter have at least one member aged over 65.
One nation, two realities
Compared to the Household Income and Expenditure Survey (HHES) of 2022, incomes have stagnated, it found. The average monthly income rose by a whisker compared to 2022 data, going from Tk 32,422 to Tk 32,685.
The jump from the bottom 10% – who make around Tk 8,500 – to the middle 40% is around Tk 20,000, with the latter making around 28,000.
However, there is a chasm between the middle 40% and the top 20%, with a disparity of almost Tk 50,000.
Another privilege enjoyed by the top 20% is that their earnings are enough to cover monthly expenses. The top 20% and top 10% say they are left with around Tk 8,000 to spare.
The others don't make enough to cover monthly expenses. The bottom 10% are the worst off, running on a deficit of around Tk 3,500 each month despite increasing debt.
The bottom 40%, who have debts that exceed savings by 112%-308%, saw 7% net increase in debt over the first half of this year.
Almost 30% of respondents said household expenses were the reason they incurred debts. Medical expenses were the second-biggest reason, identified by around 10%, followed closely by home repairs and shop credit.
Homeownership, but little comfort
An overwhelming majority of respondents also reported owning their home, meaning the situation is far more bleak for non-homeowners. Only 15% live in a rented house on either a shared or solitary basis.
Around 82% of respondents said they owned a house, with 39% residing in tin-shed structures, 28% in 'semi-pucca' homes and only 23% in pucca homes, i.e permanent, well-built structures.
The remaining 9% still live in 'kacha' houses, temporary residences made of mud or other materials.
Although 98% reported having access to and using electricity as an energy source, only 13% have access to piped gas, and just 5% use solar energy.
Almost 75% still use firewood, with over 90% turning to it for cooking and around 65% still use biomass and 45% cylinder gas.
Medical bills: A constant threat
Medical expenses are a drain on incomes across the board, with nearly half of all households having at least one chronically ill member.
High blood pressure, gastric issues or ulcers, diabetes, and heart disease were the most prevalent health issues.
"The burden of chronic illness and the routine expenditure it entails is not limited to any one group but is a cross-group phenomenon", the study pointed out.
Almost 20% reported that they had suffered from a financial crisis in the past year, with 67% saying it happened due to medical expenses and 27% due to loan repayments.
Natural disasters caused a crisis for around 7% of respondents.
Furthermore, over one in three households still have non-sanitary toilets (hanging latrines, ring-slab without water seal, open defecation).
Around 37% of households did not have internet access, while almost 80% of those who did were reliant on mobile network operators. The urban-rural divide was also visible, with nearly three-quarters enjoying internet access in urban areas, but only 59% in rural areas.
Nationally, 78% of respondents said they had access to button phones, 72% to smartphones, but only 4.6% to a computer or laptop. However, 55% of the top 10 households owned a computer or laptop.
Safety nets riddled with holes
Flaws with the social safety net system also prevent many from getting some of their basic needs met.
Only 24% said they had access to social safety net programmes, with 17% getting access to the fair price card or food-friendly program, 23% primary education stipend, and 32% old age allowance.
Yet, there were significant gaps in coverage.
Nearly 20% of those eligible for primary education stipends also do not get the benefit.
The fair price card is a major culprit, covering only 5.3% of the eligible 32.1%. The study said a significant share of Fair Price Card recipients are non-poor, indicating inclusion errors.
Around 5% of households were eligible for old-age or widow allowances but did not receive them.
Hope against the odds
All these findings paint a picture of two parallel realities. On one side exists a privileged minority, secure and comfortable. On the other is the overwhelming majority, for whom daily life is a precarious balancing act, with the eternal risk of slipping into crisis by a single medical bill.
Despite this scenario, optimism largely prevails, even across low-income brackets.
Of those in the bottom 10% in terms of earnings, 27.6% felt their situation was manageable, more than the 26.1% who said they were always facing a shortage of funds. Around 38% said they had occasional shortages.
Those at the other end of the scale were equally unwilling to admit it. Of those in the top 10%, 35% said their situation was manageable, 45% said they were doing well and only 10% said they were very well off.
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