Global manufacturing growth remains low, output up just 1.9%
Global manufacturing output rising by just 1.9 percent during the same period, according to a report by the United Nations Industrial Development Organization (UNIDO).
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 industrialised economies rose by a mere 0.2 percent in the fourth quarter of 2015. Growth was 0.9 percent in North America, and 0.6 percent in Europe. In East Asia, manufacturing output fell by 0.5 percent. A negative growth of 0.6 percent 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 percent. However this growth was lower than the 5.2 percent registered in the previous quarter.
Despite the slower pace, developing and emerging industrial economies contributed more than 80 percent of global manufacturing growth.
The manufacturing output of China rose by 6.5 percent, lower than the 7.0 percent 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 percent in the fourth quarter of 2015, and manufacturing output also dropped in Argentina, Chile and Colombia.
Africa’s manufacturing output dropped by 0.2 percent, 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. ■