Trend and Magnitude of Poverty

National level vs. Extreme level

Bangladesh has been successful in achieving significant reduction in poverty since 1990. The following figure shows that significant decline in poverty occurred from 2000 to 2018. National poverty headcount declined from 48.9 percent in 2000 to 21.8 percent in 2018, while extreme poverty rate declined from 34.3 to 11.3 percent over the same period. Among the four interim periods, the highest reduction in poverty gap and squared poverty gap show long-term trends similar to those for headcounts rates.

	2000	2005	2010	2016	2017	2018
Poverty	48.9	40	31.5	24.3	23.1	21.8
Extreme poverty	34.3	25.1	17.6	12.9	12.1	11.3

Source: Bangladesh Bureau of Statistics, Various HIES

A notable feature of poverty reduction between 2010 and 2016 was a sizeable decline in the incidence of poverty. The percentage of population under the lower poverty line, the threshold for extreme poverty, fell by 17.6 percent from 12.9 percent in 2016. The parentage decline in extreme poverty rate was thus more than that in the poverty rate, consistent with the growth in per capita consumption for the bottom two deciles being higher than that for the third and fourth deciles.

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