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    5 March 2014

    Re-issued as received

    Global manufacturing growth picks up in industrialized economies, drops in several developing countries - UNIDO quarterly report

    VIENNA, 5 March (United Nations Industrial Development Organization) - World manufacturing output grew by 3.3 per cent during the last quarter of 2013 as recovery gained further strength in industrialized countries, according to a report released by the United Nations Industrial Development Organization (UNIDO).

    The manufacturing output rose in all industrialized regions, in East Asia, Europe and North America, an indication of the broader base of growth prospect for 2014. However, many developing economies, trapped by low growth that followed years of economic recession, are yet to benefit from the recovery in industrialized countries.

    During the last quarter of 2013, the manufacturing output of East Asia rose by 4.0 per cent, Europe by 1.5 per cent and North America by 2.9 per cent. This was the first time since 2011 when an absolute increase in Europe's manufacturing output was recorded. The manufacturing output rose in major European economies, including in France, Germany, Italy, and the United Kingdom. Outside Europe, the manufacturing output increased in Japan by 4.9 per cent, Malaysia by 4.7 per cent, and the United States by 3.0 per cent.   

    The current manufacturing growth in industrialized countries is related to increased consumer spending in durable products. Production of motor vehicles rose by 8.2 per cent in France, 6.2 per cent in Italy, and 13.2 per cent in the United Kingdom. A similar high growth in the auto sector was observed in Japan and the United States. Growth was also observed in the production of general-purpose machinery, electronic appliances, and electronic goods for household use.

    Since industrialized countries account for almost two-third of the world manufacturing value added, the recovery in these countries will make a significant impact on global manufacturing growth prospects in the coming years.

    Among developing and emerging industrial economies, China's manufacturing output rose by almost 10.0 per cent mainly thanks to domestic demand. By contrast, growth in other developing economies slipped below 1.0 per cent in the last quarter of 2013.

    The low growth of manufacturing output in other developing countries is caused by external factors such as decline in capital inflow, and internal factors such as the rise of production cost. As the recovery in industrialized countries is at an early stage, the impact on manufacturing growth of developing economies through increases in investment and commodity trade is unlikely to be felt in the near future.

    The manufacturing output of India dropped by 2.0 per cent in the fourth quarter amid the rise of the production cost due to the weakening of the Rupee. Manufacturing output also fell in Argentina by 3.4 per cent, Indonesia by 0.8 per cent, and Saudi Arabia by 2.5 per cent. Brazil and Mexico maintained a moderate growth, while the manufacturing output of Turkey rose by 4.9 per cent.

    The developing economies of North Africa were quick to benefit from the recovery in Europe. The manufacturing output rose by 4.3 per cent in Morocco and by 6.9 per cent in Tunisia. However, it dropped in Egypt by 2.6 per cent amid the continuing political instability.  

    In general, improved growth prospects for manufacturing output in 2014 are expected to influence global manufacturing positively.

    The full report is available here.

    UNIDO regularly releases the statistics on current growth trends of global manufacturing at country and regional level.

    UNIDO maintains an international industrial statistical database in accordance with the mandate of the United Nations Statistics Commission. Data can be downloaded through online access or obtained through CD products and publications.

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    For further information, please contact:

    Shyam Upadhyaya
    UNIDO Chief Statistician
    Email: S.Upadhyaya[at]