Nearly Half of Bangladesh’s Families Are in Debt: BBS

Nearly 47.42% of households in Bangladesh are in debt, as rising living costs continue to outpace income, with rural families facing greater financial pressure than their urban counterparts, according to a special survey by the Bangladesh Bureau of Statistics (BBS).

The Living Standard Survey 2025, conducted by the BBS’s Poverty and Livelihood Statistics Cell, found that over the past year, 51.91% of rural households, 40.19% of urban households and 32.11% of households in city corporation areas had to borrow money to cover essential expenses.

The survey was conducted from September 14 to 18 last year, interviewing 3,000 households across rural areas, urban areas and city corporation regions.

Data were collected from 150 sample areas using tablet devices and digital computer-assisted personal interviewing methods.

The survey found that the average monthly household income nationwide stood at Tk 33,513, while average monthly expenditure was Tk 35,311.

Households in city corporation areas recorded the highest average monthly expenditure at Tk 46,778. The figure stood at Tk 37,344 in other urban areas and Tk 32,532 in rural areas.

Nationally, households spent roughly half their monthly budgets on food and the other half on non-food items, although spending patterns varied by location.

Rural households allocated a larger share of their budgets to food, while urban households spent more on non-food items. In city corporation areas, non-food expenses accounted for 56.7% of total monthly expenditure.

Zahid Hussain, former lead economist at the World Bank’s Dhaka office, said the survey findings reflected Bangladesh’s weak macroeconomic conditions since the pandemic.

According to official data, inflation remained higher than wage growth for 56 consecutive months through September.

The BBS Wage Rate Index showed that wage growth slowed to 7.9% in September, down from 8.05% in August. The index tracks monthly wages for low-income skilled and unskilled workers across 63 occupations in the agriculture, industry and services sectors.

According to the World Bank’s latest Bangladesh Development Update, published on October 6, prolonged economic weakness is undermining living standards. The report identified insufficient labour demand and persistently high inflation as key factors behind the pressure on households.

The national poverty rate could rise from 18.7% in 2022 to an estimated 22.5% in 2026, the report projected.