With national elections scheduled in early 2026, citizens are looking not just for political change, but for economic stability and dignity in everyday life. As debates swirl around electoral reform and political realignment, an equally urgent conversation must focus on the real conditions confronting ordinary Bangladeshis: inflation that erodes wages, rising poverty, slow growth, and shrinking employment opportunities. Mixed signals from policymakers and the persistence of structural weaknesses demand a critical, evidence-based agenda from the next leadership.
In recent years, Bangladesh’s growth story hailed internationally for lifting millions out of poverty has shown clear signs of strain. Official data from the Bangladesh Bureau of Statistics indicates that GDP growth slowed to 3.69 percent in FY 2024–25, the lowest rate since the COVID-19 pandemic and well below the double-digit expansion of previous decades.
While the government and development partners like the World Bank and IMF project modest recovery in coming years, these numbers underscore a worrying trend; growth is now too slow to generate sufficient jobs or raise real incomes.
One of the most palpable challenges for households is inflation. Despite some easing in headline figures recently, prices remain elevated and continue to outpace wage growth. Rural inflation was 9.05 percent, and urban inflation was even higher at 9.50 percent in mid-2025. Bangladesh Bureau of Statistics Even with reports that overall inflation could fall to around 7-8 percent by late 2025. For many Bangladeshis, inflation is no abstract concept but a daily hardship. Wages have not kept up with rising costs, shrinking real incomes and forcing difficult choices between nutrition, health, and education.
After decades of remarkable poverty reduction, recent years have seen this hard-won progress backslide. The World Bank’s 2025 Bangladesh Development Update reports that the national poverty rate in Bangladesh rose to about 21.2 percent, up from 20.5 percent a year earlier. That means millions more are living on the margins, vulnerable to shocks and without adequate safety nets.
Generations of Bangladeshis have benefitted from the export-led boom in RMG (readymade garments) and remittances. But global competition, rising costs, and logistical challenges now threaten that model. Without expanded and diversified job creation, particularly in high-value services, light manufacturing, and green sectors, Bangladesh will struggle to absorb its rapidly growing workforce.
At the same time, Bangladesh’s social protection architecture- historically a patchwork of programs remains unable to support those who have fallen behind. Safety nets often fail to reach the most vulnerable, suffer from duplication and leakage, and are not yet adaptive to crises like climate shocks or economic downturns.
The next government must move beyond incremental or technocratic fixes. Instead, it should champion a people-centered agenda that responds to the concrete realities of citizens’ lives. This demands bold, coordinated action across several fronts such as revitalising growth with inclusive investment, stabilisation of prices and protection of purchasing power, expansion and modernisation of social protection, prioritising jobs for the youth and women, and strengthening governance and trust.
Reviving economic growth is not simply about revising GDP projections. It means creating conditions that incentivise productive investment in labor-intensive sectors, strengthen supply chains, and reduce barriers for small and medium enterprises (SMEs). Stubborn inflation, especially for food and essential non-food items, requires stronger market regulation, targeted subsidies, and improved supply chain efficiency. Digital registries, transparent eligibility criteria, and robust grievance mechanisms are minimum standards. The government should also introduce shock-responsive safety nets that can buffer households during economic downturns or natural disasters. Enhancing Technical and Vocational Education and Training (TVET), expanding apprenticeships, and promoting digital and green job pathways are critical. Equally important is removing barriers that keep women out of the labour force, including unsafe commutes, childcare responsibilities, and workplace discrimination. Economic transformation is impossible without governance reforms that reinforce transparency, accountability, and citizen participation. Local government must be empowered to deliver services effectively, and procurement, public finance, and regulatory bodies must operate free from undue political interference.
The statistical narrative slowing growth, rising poverty, employment contraction, and persistent inflation are not destiny. They are a call to action for leadership that listens to citizens’ daily realities and responds with urgency, courage, and accountability.
The next government must not be content with incrementalism. It must embrace a developmental agenda rooted in equity and opportunity. The true test of leadership will not be measured merely by electoral success, but by the measurable improvement in people’s lives.
The writer is a Protection Specialist & CEO at Favor Consultancy
