PPRC.
Special Report
Bangladesh Household Economy Study | Mid-2025
70
Special Report | The Real Economy

Bangladesh’s hidden economy is running on empty

8,067 Households 432 PSUs Survey-Weighted Audit

Households are no longer absorbing shocks. They are carrying them. Income matches expenditure. Debt replaces savings. Stability is no longer structural. It is improvised.

PPRC National Household Economy Study Mid-2025 Baseline A national baseline of fragility
Systemic Thresholds

No margin remains.

The Hollow Middle
17.97%

Households above the poverty line but below the median per-capita monthly income, occupying a zone of non-poverty without stability.

Underemployment
37.7%

Work exists. Income stability does not.

Urban Gini
0.532

Urban expenditure inequality remains sharply above rural levels.

Food Stress (Poorest Decile)
12.2%

Bottom-decile households reporting skipped meals.

Full-Day Hunger (Poorest Decile)
8.8%

At least one full day without food in the last month.

Household Balance Sheet

No margin remains.

Income and expenditure now sit almost on top of each other. The household economy is still moving, but without spare room.

The surplus is nominal.

At national level, the monthly surplus is just BDT 70. Shock absorption is no longer structural.

Debt replaces savings.

Across lower deciles, liabilities overtake buffers. Resilience is no longer asset-backed.

Fragility becomes structural.

The problem is no longer episodic shock. It is permanent exposure concentrated at the bottom.

Balance Sheet

Income vs Expenditure

BDT / month
Income and expenditure nearly cancel out.
Household Threshold
BDT 70

The national household surplus compresses to a margin smaller than routine volatility.

SYSTEM

The system holds. Households do not.

Household economy analysis | PPRC 2025
Stress Ecology

Shock transmission is internal.

Health shocks, debt stress, food insecurity, and underemployment cluster and reinforce one another inside the household balance sheet.

Risk Stack

Co-occurring Stress

Healthcare as crisis trigger
67.4%
Chronic illness prevalence
51.3%
Underemployment
37.7%
Skipped meals (D1)
12.2%
Food Stress

Bottom-Decile Food Stress

% of households
Food is the adjustment variable
Food is the adjustment variable.
Observed Effect

Underemployment and Meal Skipping

Odds ratio
Limited work hours raise skipped-meal odds.
Observed Effect

Shock and Distress

OR
Shock → Debt stress
2.46×
Distress → Harassment
2.78×
Remittance → lower debt stress
0.61×
Below poverty line → debt stress
1.95×
0.532
Structural Divides

Inequality defines exposure.

Exposure is unevenly distributed. Urban households face steeper expenditure inequality, while remittance-linked resilience is concentrated in upper deciles.

Inequality Profile

Urban vs Rural Gini

Expenditure inequality
Urban inequality runs markedly steeper.
Buffer Access

Remittance by Decile

% by decile
Remittance access is concentrated higher up.
Distributional Signals

Vulnerability Card

Female-headed in poorest decile
23.75%
Female work participation
25.55%
D10 remittance share
17.8%
Governance & Protection

Protection fails under stress.

Governance burdens intensify for households already in distress, while safety-net targeting reveals both undercoverage and inclusion errors.

Governance Friction

Reported Harassment

% reporting
Health services remain the sharpest friction point.
Safety Net

Targeting Mismatch

% of households
Coverage misses many of the eligible poor.
Residual Resilience

Access without leverage.

Digital access is widespread. Productive digital capability is not. Households can view the economy through screens, but remain unevenly positioned to participate in it.

Digital Access

The Glass Screen Divide

% ownership
Smartphones are common. Computers remain marginal.
Adjusted Associations

Inference Layer

Internet → higher observed income
+32.4%
Internet → optimism
1.45×
Shock exposure → debt stress
2.46×
Distress → harassment
2.78×