Rise of the Billionaires in Bangladesh

July 30, 2023
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Bangladesh has witnessed a surprising rise in the number of millionaires during the Covid-19 period, as per the updated data released by Bangladesh Bank. Despite the inflation threat driven by the Russia-Ukraine war, the country saw a notable increase in millionaire bank account holders during the first quarter of 2022. So,let’s know about Rise of the Billionaires in Bangladesh.This blog post delves deeper into the reasons behind this surge, the impact of the pandemic on wealth distribution, and the noteworthy trends in millionaire growth over the years.

According to the latest data provided to UNB, the number of millionaire bank account holders in Bangladesh reached 103,597 in the first quarter of 2022, compared to 101,976 at the end of December 2021. This surge of 1,621 millionaires in the first three months of 2022 highlights the resilience of the economy amidst the Covid-19 challenges.

Economist AB Mirza Azizul Islam stated that the global economy is gradually recovering with the easing of pandemic-related restrictions. The wheel of industry is turning, not just in Bangladesh but also in other countries. As a result, the wealthy individuals in Bangladesh and worldwide have experienced further wealth accumulation during the pandemic. The statistics from Bangladesh Bank indicate that the deposits in millionaire bank accounts increased by Tk 96.47 billion (9,647 crore) during the January-March period of 2022. As of March 2022, the total volume of deposits in millionaire accounts surpassed Tk 6.63 trillion (6.63 lakh crore), a significant rise from Tk 6.54 trillion (6.54 lakh crore) at the end of the previous year

While the number of millionaire accounts is less than 1% of the total bank accounts, they hold a substantial 44% of the total deposit volume. This concentration of wealth among a select few raises questions about income inequality and the need for inclusive growth. The total number of bank accounts in Bangladesh reached 127.3 million (12.73 crores) by March 2022, with a staggering deposit value of around Tk 15.15 trillion (15.15 lakh crore). Since 2010, the number of millionaires with assets worth $5 million (50 lakh) in Bangladesh has grown at an impressive average rate of 14.3% – the highest growth rate recorded globally during this period.

Over the years, Bangladesh has witnessed a significant evolution in the number of millionaires. From a mere 5 millionaires in 1972, the number soared to 47 in 1975, 98 in 1980, 943 in 1990, 2,594 in 1996, 5,162 in 2001, 8,887 in 2006, and an astonishing 19,163 in 2008. This remarkable growth indicates the country’s potential for prosperity.

The rise in the number of millionaires in Bangladesh during the Covid-19 period reflects the resilience and growth of the economy amidst challenges. While the increasing number of wealthy individuals showcases progress, it also calls for attention to income inequality and the importance of inclusive economic policies. As Bangladesh continues to move forward, addressing these concerns will be crucial to creating a more equitable and sustainable future for all its citizens.