Up to 600,000 jobs at risk as poverty could worsen in Bangladesh: World Bank

Bangladesh’s poverty situation could deteriorate further, with around 600,000 jobs potentially being lost this year due to the war in Iran and the wider crisis in the Middle East, according to a World Bank assessment.

The country has already seen an increase in poverty following the Covid-19 pandemic, the Russia-Ukraine war, persistently high inflation and uncertainty in the aftermath of the 2024 mass uprising.

The findings are part of an assessment finalised by the World Bank on June 15, after the Bangladesh government sought budget support to cope with rising import costs of fuel, fertiliser and other essential commodities amid the Middle East crisis.

The World Bank estimates that approximately 1.4 million additional people fell into poverty in Bangladesh in 2025.

The outlook for 2026 had initially appeared more encouraging. In the absence of the Middle East conflict, about 1.7 million people were expected to move out of poverty this year. However, the figure could now drop to roughly 500,000, the assessment said.

Rising prices are also expected to contribute significantly to the worsening poverty situation. The World Bank estimates that higher prices could account for around 10% of the increase in poverty this year.

An increase in energy prices could raise transportation and electricity generation costs, while also increasing industrial production expenses. These additional costs could eventually drive up the prices of food and other essential goods.

Sources said the government sought budget support from the World Bank following the escalation of the Middle East crisis, and the lender agreed to provide assistance. However, the World Bank required the government to consolidate unused funds from various development projects and use them as budget support.

On June 26, the World Bank approved $713 million in budget support for Bangladesh.