Global manufacturing increased modestly in 2015

22/02/2016 06:01 AST

Global manufacturing production rose by just 2.8 per cent in 2015 as developing and emerging industrial economies registered reduced growth rates, according to the 2016 edition of the International Yearbook of Industrial Statistics released in Vienna.

The Yearbook, published by the United Nations Industrial Development Organisation, UNIDO, says that despite a declining manufacturing growth rate, China has become the largest manufacturer in the world, surpassing the United States of America.

Japan, Germany and the Republic of Korea stand in third, fourth and fifth positions respectively. Among other industrial economies, India moved up to sixth position, leaving Italy and France in seventh and eighth positions among the world’s leading manufacturers. Indonesia has become a new entrant to the group of top 10 manufacturers.

Since the 2008-2009 financial crisis, which had strong negative impact on manufacturing growth of industrialised economies, emerging industrial economies have maintained relatively higher manufacturing production growth rates.

In recent years, however, this growth rate has decelerated due to falling commodity prices and adverse conditions for external finances. The manufacturing value added, MVA, growth rate of developing and emerging industrial economies dropped to 4.5 percent in 2015 from 5.4 percent in 2014.

In contrast, industrialised economies improved their growth performance thanks to lower fuel prices and improved fiscal conditions. In 2015, the manufacturing value added of industrialised economies grew by 1.5 percent.

As well as presenting the annual figures on global manufacturing growth and structure, the Yearbook also presents figures on rising inequality among the nations in terms of MVA per capita. The difference between the MVA per capita of industrialised economies and Least Developed Countries, LDCs, has been consistently rising over the last 25 years. Currently, the MVA per capita of industrialised economies stands at $5,350, compared to US$89 of LDCs.

The Gulf Today