Bangladesh political chaos may end.

Political chaos in Bangladesh-widely cited for weakening the country's economy-may soon be at an end. On April 17, 2007, Agence France-Presse reported that the country's most recent prime minister has agreed to exile in Saudi Arabia. The move was initiated by the Bangladesh military, which took control of the government following a declaration of a state of emergency by the Bangladesh president following months of political violence after the prime minister's term ended in October 2006.

Bangladesh has been under the influence of two families-bitter rivals-since independence from Pakistan in 1971. The family head of the rival faction is also out of the country and the military is attempting to influence her exile as well.

In spite of years of chaos, Bangladesh has been growing. The International Monetary Fund (IMF) says that 2006 was the country's best year in over a decade with GDP growing 6.7 percent. The IMF estimates that GDP will grow 6.6 percent in 2007, and 6.5 percent in 2008.

Among the problems facing Bangladesh is inflation. The website Bangladesh News, citing the Bangladesh Bureau of Statistics (BBS) as its source, says that following three months of decline, inflation rose 1.7 percent in February 2007. Escalating food prices are to blame for the upsurge. Bangladesh's agricultural sector performed poorly last year because of insufficient rainfall.

The Australian Broadcasting Corporation (ABC) said on April 5, 2007 that the Bangladesh government forecast of growth was 6.5 percent. The forecast was for the current fiscal year, which ends in June 2007. Also citing the BBS as its source, the ABC reported that while the Bangladesh agricultural sector slumped, industry was making impressive strides.

Industrial output gained 13 percent in FY2006-2007 most from gains in the textile industry. The BBS said that growth would have been in the vicinity of 7 percent had not the agricultural sector fared so poorly. Farm output declined 0.87 percent. Also under performing were the country's construction sector and retail sector. The ABC says Bangladesh grew at an average annual rate of 5 percent since the early 1990s.

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