Road transport hit by turmoil

The road transport sector shrank in the outgoing fiscal year while the air and river transport sectors expanded owing to the three-month blockade and shutdowns enforced by the opposition.

In fiscal 2014-15, the road transport sector grew 5.45 percent, in contrast to 5.56 percent a year earlier, according to the provisional data from Bangladesh Bureau of Statistics.

Waterways rose 3.48 percent, up 33 basis points from a year earlier.

The air transport sector grew 1.24 percent, which is more than double from a year earlier. Last fiscal year, it was 0.61 percent. Overall, the transport sector growth was 0.06 percentage points less than last year at 5.99 percent.

Zaid Bakht, research director of Bangladesh Institute of Development Studies, said the violent political turmoil seriously affected people's movements, particularly by road.

For the same reason, travel by air and waterways increased.

During that time, the demand for air tickets on domestic routes soared so much that the airlines could not cope, said Bakht, also the chairman of Agrani Bank.

In the same vein, wholesale and retail trade contracted in the outgoing fiscal year. It grew 6.59 percent in contrast to 6.73 percent last year.

Owing to the transport disruption, the wholesalers could not bring in their fresh goods to the market, Bakht said.

The construction sector expanded 8.63 percent, which is 55 basis points more than last year.

The manufacturing sector saw its prominence in the economy increase too: the sector grew 10.32 percent, in contrast to 8.77 percent last fiscal year.

The road transport sector shrank in the outgoing fiscal year owing to the three-month blockade and shutdowns enforced by the opposition. Photo: Focus Bangla/File

The political turmoil did not affect agriculture much, but the sector registered less growth than last year.

In the outgoing fiscal year, the agriculture sector grew 2.07 percent in contrast to 3.81 percent last year.

The slowdown in agriculture was due to the base effect. Last year saw bumper boro production, which was not possible to surpass this year.

The GDP growth this year will be 6.51 percent against the government target of 7.3 percent.

In the last six fiscal years, the government fixed GDP growth upwards of 7 percent and every time it failed to achieve break the 7 percent-barrier.

For fiscal 2015-16 too, the government will target 7 percent GDP growth.

If the government can expedite the mega projects, it may be possible to attain the 7 percent target, according to Bakht.