Economy Guide in Bangladesh
Economic overview, job market trends, income levels, and financial landscape for expats
GDP
$460.20B
Total economic output of the country
HDI
0.66
Medium human development
Quality of Life
31/100
Below-average quality of life
Purchasing Power
14/100
Very weak purchasing power — limited buying capacity
Cost of Living Index
Very affordable costs (CPI: 22.19). Groceries (26.80) and restaurants (17.01) are very affordable compared to the NYC baseline.
Housing Market
Property prices average 15.31 years of household income, indicating a very expensive market. The rental market (index: 2.36) is very affordable.
Average Income Levels
A purchasing power index of 37.20 indicates low buying power compared to the NYC baseline.
Tax System
Bangladesh has a progressive income tax system for residents, with rates ranging from 0% to 30% for the assessment year 2024-2025. Non-residents face a flat 30% tax rate. The standard Value Added Tax (VAT) is 15% on most goods and services, with some reduced rates. Property transactions are subject to various taxes, including local government tax (3-4% of deed value), land tax (5% per lakh taka of property value), and VAT on apartments (2-4.5%).
Business Environment
Bangladesh ranks 29th among 50 countries in the World Bank's B-Ready report, indicating a moderately favorable environment for business entry. The startup ecosystem is growing, supported by government initiatives and new financing policies from Bangladesh Bank, including capped interest rates and increased loan limits for startups. However, challenges persist, such as uneven access to capital, weak legal protection, and regulatory hurdles.
Social Security
Bangladesh launched a Universal Pension Scheme in 2023, offering various plans for expatriates, private employees, and informal sector workers, providing old-age benefits. The National Social Security Strategy aims to modernize and strengthen social protection. While there are social assistance programs, comprehensive unemployment benefits are still under development, with limited progress on a national social insurance scheme for unemployment.
Banking & Financial Safety
Deposits in Bangladesh are protected up to BDT 200,000 (approximately USD 1,620) per depositor under the Deposit Protection Bill, 2026, which is compulsory for all scheduled banks and finance companies. Bangladesh Bank, the central bank, regulates and supervises the banking sector, implementing Basel III capital standards and being broadly compliant with FATF anti-money laundering standards. However, the banking sector faces challenges, including high non-performing loans and governance issues, with ongoing reforms to enhance stability.
Deposit Protection: up to $1,620 USD (see sources)More Insights for your Move to Bangladesh
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