Global manufacturing is showing clear signs of recovery following the recession observed in recent years. World manufacturing value added (MVA) rose by 3.5 percent in 2017, the highest rate in last seven years, according to The International Yearbook of Industrial Statistics 2018 released by the United Nations Industrial Development Organizations (UNIDO).
A favourable environment in financial markets and the stabilization of commodity prices have had a positive impact on global demand for manufactured goods. Low energy prices and an increasing level of investment brought a significant change to European manufacturing, with a 2.7 percent growth of MVA in 2017.
A rise in the pace of manufacturing growth was also observed in East Asian industrialized economies where the MVA rose by 2.6 percent in 2017.
Developing and emerging industrial economies also improved their growth performance with an increase in MVA by 3.7 percent in 2017. Much higher growth was achieved by China at 6.5 percent. Thanks to consistently high growth over the years, China is now established as the world’s largest manufacturer, accounting for more than one quarter of global manufacturing production.
Asian manufacturing growth has been characterized by a significant shift to high-technology industries, which accounted for more than a third of the total manufacturing production of India, Indonesia and Viet Nam. China, Japan, the Republic of Korea and Malaysia are among the world’s leading producers of computer, electronic and optical products.
Positive signs were also observed in Latin American countries where a declining trend in manufacturing output observed since 2013 was reversed in 2017.
MVA growth in African countries remained weak, especially in African least developed countries (LDCs). The share of manufacturing continued to decline in African LDCs posing a serious challenge for the continent’s achievement of the Sustainable Development Goal on industrialization.
- Culled from UNIDO