banner

manufact
1173 Views

Manufacturing growth expected to remain low in 2016 – UN report


6 September 2016 – A new United Nations report has indicated that global manufacturing growth is expected to remain low in 2016 due to weakened financial support for productive activities.

Find sales opportunities in your market

The quarterly World Manufacturing Production report, published by the UN Industrial Development Organization (UNIDO), has stated that with financial uncertainty still looming across Europe, foreign direct investment has not yet reached the 2007 pre-crisis level.

According to a UNIDO news release issued yesterday, world manufacturing output is expected to increase by only 2.8 per cent in 2016. However, in contrast to recent years, there will be no breakout from the low-growth trap in 2016.

The agency also warned that lower industrial growth rates pose a challenge for the implementation of Sustainable Development Goal (SDG) on promoting inclusive and sustainable industrialization and foster innovation, as encapsulated by Goal 9, which also aims to significantly raise the share of manufacturing in the economies of developing countries.

It further stated that that manufacturing production is likely to rise by only 1.3 per cent in industrialized countries and by 4.7 per cent in developing ones.

In terms of growth rates for countries, the growth rate performance of China, the world’s largest manufacturer, is likely to further decline from last year’s 7.1 per cent to 6.5 per cent this year. Russia and the United States recorded marginal rises of 1.0 per cent and 0.3 per cent, respectively.

Manufacturing output in Japan, however, fell by 1.8 per cent. India too suffered a sudden 0.7 per cent drop in growth figures. In contrast, other Asian countries largely maintained higher growth rates. Manufacturing output rose by 5.6 per cent in Indonesia, 3.9 per cent in Malaysia and 13.5 per cent in Viet Nam.

Additionally, in Europe, the uncertainty following the Brexit affected the growth rate performance in manufacturing in the second quarter of 2016, below 1.0 per cent for the first time since 2013.

Among Latin American economies, manufacturing output fell by 3.2 per cent in the second quarter, amid a continuing production decline in the region.

The report further noted that, based on estimates from the limited available, manufacturing output rose by 2.5 per cent in Africa. South Africa, the continent’s largest manufacturer, significantly improved its growth performance to 3.3 per cent in the second quarter. Higher growth rates of 8.3 per cent and 7.6 per cent were achieved in Cameron and Senegal.

In terms of growth estimates by manufacturing sectors, the report stated that the production of tobacco fell for the second consecutive quarter, declining by 2.6 per cent.

It also stated that developing economies maintained higher growth in the production of textiles, chemical products and fabricated metal products, while the growth performance of industrialized economies was higher in the pharmaceutical industry and in production of motor vehicles.
Earn valuable CPD credits

Redeem your 50% discount

How to use product life cycle analysis to your advantage. (David Baggs)

Source: un


Follow Alive2Green on Social Media
TwitterFacebookLinkedInGoogle +

Recently Published

Greenovate winners 2017 - Nicholas Tennick, Daniel Navarro and Mark McCormick
»

UCT triumphs in environmental innovation at South Africa’s third Greenovate Awards

Young environmental game-changes from the University of Cape Town ...

waste1
»

Meet Jan Palm, IWMSA President fighting the war on waste

When he isn’t fighting the war on waste or designing waste ...

gwarming
»

Humans Are the “Dominant Cause” of Global Warming, According to the Latest U.S. Government Study

SOLID EVIDENCE In June of 2017, The New York Times received a ...

norway2
»

South Africa – Norway Science Week 2017: A collaboration on building a thriving blue economy

The event Team Norway will be hosting South Africa – Norway  ...

uber-660x330
»

Uber South Africa has launched its new campaign for the festive season. The campaign, conceptualised by Grey Advertising, was driven by its insights into the South African rider culture.

Kate Owen, SSA strategy and campaign lead, says, “This year’s ...

Screen Shot 2017-11-29 at 2.58.41 PM
»

What drives instability in Africa and what can be done about it

Africa will remain turbulent because it is poor and young, but also ...

Screen Shot 2017-11-29 at 2.46.22 PM
»

Groundswell Against Nuclear In South Africa Could Put Paid To A Power Deal

Even if the plan can be massaged in Zuma’s interests, it won’t be ...

Screen Shot 2017-11-29 at 2.36.04 PM
»

Construction starts on new Deloitte Africa headquarters in SA

Construction work has started on Deloitte Africa headquarters at ...

a2g3
»

SACS INVESTS IN RENEWABLE ENERGY SYSTEM

South Africa College High School (SACS) in Cape Town has made a ...