Global manufacturing expected to accelerate growth in 2017 as economic recovery strengthens worldwide
Global manufacturing growth is expected to accelerate in 2017 thanks to a steady recovery in industrialized economies and the reversal of negative trends observed in Latin American economies in 2016. Worldwide the scope of domestic demand for manufactured products has widened in 2017. The current world manufacturing output growth trends, based on the data for second quarter of 2017, are explored in a report published by the United Nations Industrial Development Organization (UNIDO).
World manufacturing output is expected to rise by 3.2 percent in 2017 - the highest rate in last six years. The manufacturing output of industrialized economies is expected to increase by 1.8 percent in 2017 and these economies will contribute almost 40.0 percent of the total global industrial growth in 2017.
The growth performance of European industrialized countries is likely to improve in 2017, with an expected rise of manufacturing by 1.6 percent. Figures for the second quarter show that manufacturing output rose by 3.5 percent in Austria, 2.4 percent in France, 2.9 percent in Germany and 3.0 percent in the Netherlands. Much higher manufacturing growth rates were observed in Bulgaria with 8.5 percent, Estonia with 8.9 percent and Slovenia with 8.3 percent.
Among non-European Union economies, manufacturing output rose by 2.8 percent in the Russian Federation and 2.4 percent in Switzerland.
The manufacturing output of the United States rose by 1.5 percent in the second quarter of 2017, the highest rate for the last several quarters. Japan exhibited an impressive growth of 5.8 percent in the second quarter of 2017.
Developing and emerging industrial economies are likely to maintain higher manufacturing growth at a rate of 5.0 percent in 2017. China’s growth will remain strong at 6.3 percent. The manufacturing output of Asian developing economies is expected to rise by 6.2 percent in 2017. Among the fast-growing Asian economies, manufacturing output in the second quarter of 2017 rose by 4.7 percent in Kazakhstan, 5.9 percent in Malaysia and 11.1 percent in Vietnam.
Manufacturing growth trends have improved in Latin American economies. Recent quarterly figures indicate that the declining trend of manufacturing output has been reversed in Brazil and positive growth has been achieved in a number of countries, including Argentina and Chile.
Africa in general is expected to improve its growth performance in 2017. However, manufacturing in South Africa, the largest manufacturer of the continent, is likely to contract in the wake of a new recession with considerable negative impact on the Southern African region. Manufacturing in the least developed countries (LDCs) of Africa is expected to grow by around 4.0 percent. However, this is lower than the required growth rate to achieve Sustainable Development Goal target 9.2 by 2030.
The UNIDO report also presents the growth estimates by manufacturing sectors. With improved investment environment and consumer confidence, global production of machinery equipment rose by 7.9 percent and the production of motor vehicles increased by 5.9 percent in the second quarter of 2017. In general, the production growth of high-tech industry has been higher than low-tech sectors, reflecting a structural change in world manufacturing.
(source by UNIDO website)