The proportion of poor households has increased in the country against the backdrop of persistent inflationary pressures along with the natural and human-made factors, according to a study.
While high inflationary pressures over the past three years have increased the food insecurity, the natural disasters and human-made factors have made the living condition for many low-income groups tough, said economists.
They said that targeted interventions were vital in poverty-prone regions through infrastructure development, economic opportunities and services.
But the political changeover after the ouster of Awami League regime on August 5, 2024, in a mass uprising could not bring about massive changes in the overall socio-economic condition, they said.
The interim government led by Muhammad Yunus that assumed power on August 8, 2024, is trying to mend the damages done on the economic front by the authoritarian Sheikh Hasina regime.
鈥楩ood distribution to vulnerable groups should be increased to strengthen the social safety net programme,鈥� said Mustafa K Mujeri, executive director of the Institute for Inclusive Finance and Development.
The observation by economists came on Monday when the Bangladesh Institute of Development Studies in a report said that the proportion of poor households increased to 26.43 per cent in 2024 compared with that of 24.73 per cent in 2022.
The proportion of the extreme poor registered an increase to 6.63 per cent in 2024 compared with that of 6.06 per cent in 2022, according to the study report titled 鈥楽mall area estimates of poverty 2022: trends and disparities in selected districts, 2024鈥�.聽聽聽
The urban areas showed a higher proportion of the extreme poor of 8.16 per cent in 2024 compared with 5.75 per cent in the rural areas, said Mohammad Yunus, research director of the BIDS, while presenting the study report.
Conducted in collaboration with the World Food Programme and the Bangladesh Bureau of Statistics, the perception study on Bandarban, Dhaka, Khulna, Rangpur, and Sylhet districts found notable variations in poverty trends.
While Dhaka maintained relatively lower poverty rate, perception surveys indicated that many residents feel worse off compared with previous years.
In contrast, districts like Khulna and Rangpur have seen dramatic increases in poverty severity, with climate-induced factors such as riverbank erosion exacerbating the situation.
In Sylhet, Zakiganj emerged as a new poverty hotspot, with food insecurity affecting a growing number of households.
The report attributed the rise in poverty to inflationary pressures, climate change-induced disasters, and economic slowdowns following global disruptions.
The rate of the overall inflation eased in February, but still at 9.34 per cent in the second month of the calendar year.
The food inflation dropped below the double digit at 9.24 per cent for the first time since March 2024 after it reached maximum 14.10 per cent in August when the supply system was disrupted greatly because of the political changeover in the country.
A key indicator of the study is the food insecurity experience scale, which showed a worsening trend.
The study found that households experiencing moderate food insecurity had increased significantly compared to previous years.
Severe food insecurity has also risen, deepening the crisis for vulnerable populations.
Households are increasingly adopting negative coping strategies, such as reducing meal portions, skipping meals, and altering food consumption habits, added the study.
Economists said that coordination between monetary policy and market management were needed to check the high food prices and the transition towards poverty.
Besides, political stability is also a key issue in this regard, said former World Bank Dhaka office chief economist Zahid Hussain.
Without political stability the investors will not make investments and the employment generation will be hampered, he said.
The government鈥檚 investment alone cannot help in increasing the income of vulnerable groups and help them to absorb various shocks.
The BIDS study report said that the exposure to at least one shock increased by more than 3 percentage points to 28.63 per cent in 2024 from 25.17 per cent in 2022.
While households in Bandarban, Dhaka, Khulna, and Rangpur reported increase exposures to shocks at different levels between 2022 and 2024, those in Sylhet reported a sharp decrease in exposure to shocks during the same period.
About 80 per cent of the households reported income loss due to the shocks.
