VIENNA, 11th March, 2016 (WAM) – World manufacturing production growth further slowed in the last quarter of 2015 with the growth of developing and emerging industrial economies weakening, and global manufacturing output rising by just 1.9 per cent during the same period, according to a report by the United Nations Industrial Development Organization (UNIDO) released today.
After a short-lived improvement in the first months of 2015, manufacturing growth in industrialized economies decelerated towards the end of the year. Weaker growth was observed both in Europe and North America. As a result of a stronger US dollar, manufacturing exports from the United States decreased.
Lower growth in China also affected consumer demand for commodities imported from Europe.
The manufacturing output of industrialized economies rose by a mere 0.2 per cent in the fourth quarter of 2015. Growth was 0.9 per cent in North America, and 0.6 per cent in Europe. In East Asia, manufacturing output fell by 0.5 per cent. A negative growth of 0.6 per cent was observed in Japan. Manufacturing output also fell in the Republic of Korea, and Singapore.
During the same period, the manufacturing output of developing and emerging industrial economies grew at a relatively higher rate of 4.6 per cent. However this growth was lower than the 5.2 per cent registered in the previous quarter.
Despite the slower pace, developing and emerging industrial economies contributed more than 80 per cent of global manufacturing growth.
The manufacturing output of China rose by 6.5 per cent, lower than the 7.0 per cent in the previous quarter. This was the lowest growth rate since 2005.
A more severe decline was observed in Latin America. The manufacturing output of Brazil dropped by 12.4 per cent in the fourth quarter of 2015, and manufacturing output also dropped in Argentina, Chile and Colombia.
Africa’s manufacturing output dropped by 0.2 per cent, mainly because of the decline in South Africa, the largest manufacturer on the continent. North Africa exhibited better growth performance, with manufacturing output rising in Egypt, Morocco and Tunisia.
The UNIDO report also contains data on growth performance by manufacturing sectors. Among consumer goods, production of wearing apparel rose by 2.2 per cent in developing economies. The highest growth in this sector was observed in Egypt and Mexico.
Developing economies also performed well in the manufacture of food products and textiles.
A notable growth of production of motor vehicles, chemical products, computing machinery was registered in industrialized economies.