11 June 2014

Africa: Global Manufacturing Output Continues to Climb in Wake of Recession, UN Reports

World manufacturing is in a phase of steady growth due to the improved financial condition of industrialized countries, especially in Europe, and China's continued growth, the United Nations today reported.

Output rose by 5.1 per cent in the first quarter of 2014, the highest rate in several years, according to the UN Industrial Development Organization (UNIDO).

"Higher growth in the production of durable goods, such as household equipment, electronic goods and motor vehicles, indicated rising consumer confidence in long-term stability," the UN agency reported.

Industrialized countries account for almost two-thirds of world manufacturing value added and growth in these economies has significant impact on global manufacturing.

"The base of current growth in industrialized countries has considerably broadened," the report's authors noted, adding that manufacturing output rose in all industrial sectors, including traditional sectors as food manufacturing and textiles.

Manufacturing output rose by 3.3 per cent in industrialized countries and 9.4 per cent in developing and emerging industrial economies in the first quarter of 2014. However, excluding China whose output grew by 13.1 per cent, manufacturing growth in emerging industrial economies was just 1.4 per cent.

The manufacture of machinery and equipment rose by 6.4 per cent in Canada, by 17.7 per cent in Japan, and by 6.0 per cent in the United States.

However, growth prospects for developing and emerging industrial economies remain fragile. Manufacturing output in Argentina fell by 1.8 per cent, in Brazil by 0.2 per cent and in India by 1.6 per cent.

The major risks to a recovery of these economies relate to the reversal of capital flows, as an external factor, and the rise in the cost of production as an internal factor, the authors summarized.

Ads by Google

Copyright © 2014 UN News Service. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.