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Global industry growth may stabilise in 2012

business Updated: Dec 28, 2011 23:38 IST

World's industrial production is expected to maintain a consistent growth in 2012 even as it hinges on actions taken by Europe and the US, a UNIDO report said.

The global manufacturing output in the third quarter of 2011 (July-September) rose by 5.5% compared to the same period of 2010, it said.

"If the current trend prevails, it would be fair to make an optimistic projection that world industrial production is likely to stabilise in 2012," the report said.

In the first and second quarter of 2011, the sector grew by 5.2% and 6.5% respectively, it said.

However, much would depend on the actions taken by the governments in Europe and the US to consolidate their budgets and the implications of their fiscal policies on the manufacturing sector, it added.

Both the US and Europe are facing slowdown in their economies.

The report pointed out that the manufacturing output of developing countries grew continuously at a very high pace at 13% compared to the same period in 2010.

"Developing countries have made significant contributions to the overall growth of world manufacturing," it added.

China, which accounts for half of the total manufacturing value-added of developing countries, grew by 14.5% in the third quarter.

Moderate growth was seen in manufacturing output of nations like Russia (7.2%), India (3.1%), Argentina (3.8%) and Brazil (0.1%), during the period.

During the third quarter of 2011, developed nations like Germany recorded strong growth in manufacturing output which grew by 9.6% and Austria 7.2%.

However, moderate growth was observed in France (4.2%) and the UK (2.1%).

It said the impact of the euro zone's financial instability seems to have been limited to only a few countries, so far.

Further, it said manufacturing growth in Greece, Portugal and Spain was negative during the period.