Emerging economies drag global manufacturing output in Q3
Following a deceleration in manufacturing output in developing and emerging industrial economies, world manufacturing output has recorded a modest growth of 2.7 per cent in the third quarter of 2015.
Indeed, latest report from the United Nations Industrial development Organization (UNIDO), showed that for the first time in recent years, the growth trend in industrialized economies was upward compared to declining trend in developing and emerging industrial economies.
Precisely, manufacturing output grew by 1.5 per cent in industrialized economies, up from 0.9 per cent in previous quarter, while in developing and emerging industrial economies, the growth rate dropped to 5.0 per cent, down from 5.3 per cent in previous quarter.
“While the decline in China’s manufacturing output growth is a cause for concern, the growth rates recorded for the quarter in other Asian countries is remarkable, even as China continues to represent the driving force for growth within the emerging economies group, especially as Latin America’s recession continues and Africa’s growth remains sluggish”, the report showed.
Similarly, the report noted that Eurozone industrialized countries have further improved their growth courtesy an increase in commodity export prompted by lower energy costs and the depreciation of the euro against major world currencies.
By contrast, manufacturing in the United States was upset by a stronger dollar and a consequent loss of exports.
Lower growth was observed in East Asian industrialized economies, especially in Japan where manufacturing output fell by 0.4 per cent in third quarter of 2015. In contrast, manufacturing output rose in Malaysia and the Republic of Korea.
Among the developing and emerging industrial economies, China’s manufacturing grew by 7.0 per cent, which was lower rate than previous quarter. China’s declining growth has raised concerns in other emerging industrial economies.
In Africa, manufacturing output rose by just 0.1 per cent. In Latin America, it fell by 3.3 per cent. The largest loss was observed in Brazil, where in third quarter manufacturing output dropped by 11.0 percent. Declines in manufacturing output to lower extent were also observed in other countries in the region, including Columbia and Peru.
Asian economies were less affected by China’s declining growth. India’s growth rate rose to 4.6 per cent in the third quarter compared to 3.7 per cent in the previous quarter. Similarly, manufacturing output rose in Indonesia by 4.2 per cent and in Vietnam by 12.5 per cent.
In terms of sectors, in industrialized countries production growth rates increased in high-technology sectors such as electric goods, communication equipment and motor vehicles.