Bangladesh flagEconomy Guide · Bangladesh

Economy Guide in Bangladesh

Economic overview, job market trends, income levels, and financial landscape for expats

Economic Overview

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

Comparison data legendCompare:
Country
Continent Avg

Cost of Living Index

0510
Very Affordable

Very affordable costs (CPI: 22.19). Groceries (26.80) and restaurants (17.01) are very affordable compared to the NYC baseline.

Housing Market

0510
Very Poor

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

0510
Very Poor

A purchasing power index of 37.20 indicates low buying power compared to the NYC baseline.

Tax System

0510
Moderate

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

0510
Moderate

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

0510
Moderate

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

0510
Moderate

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)