6 September 2016: The UN Industrial Development Organization (UNIDO) released a quarterly report that predicts global manufacturing growth will remain low in 2016, posing a challenge for implementing the Sustainable Development Goals (SDGs), particularly on inclusive and sustainable industrialization (ISID). SDG 9 calls to “Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation” by 2030.

UNIDO’s report, titled ‘World Manufacturing Production: Statistics for Quarter II 2016,’ cautions that current patterns of growth are not sufficient to achieve SDG 9, particularly target 9.2, by which governments commit to “promote inclusive and sustainable industrialization and, by 2030, significantly raise industry’s share of employment and gross domestic product (GDP), in line with national circumstances, and double its share in least developed countries (LDCs).” The authors observe that the impact of structural reforms is “yet to be seen,” with “no clear indication that breaking out of the current low growth trap is imminent.”

The report also predicts that world manufacturing output will increase by 2.8% in 2016. Developing countries are expected to experience a 4.7% increase, while manufacturing production in industrialized countries is predicted to rise by 1.3%. Growth performance in developing countries is primarily in the production of textiles, chemical products and fabricated metal products, while industrialized economies’ growth comes from the pharmaceutical industry and motor vehicles, the authors report.

China, the world’s largest manufacturer, experienced a decrease in its growth rate performance from 7.1% in 2015 to 6.5% in 2016. Manufacturing outpost rose by 13.5% in Viet Nam, 8.3% in Cameron, 7.6% in Senegal, 5.6% in Indonesia, 3.9% in Malaysia, 3.3% in South Africa, 1.0% in the US, and 0.3% in the Russian Federation. Latin America experienced a continuing decline in its growth rate. [UN Press Release] [UNIDO Press Release] [Publication: World Manufacturing Production: Statistics for Quarter II, 2016]