The Global Manufacturing Industry is on Track for a 0.6% Growth in 2024.
The global manufacturing industry is expected to grow by 0.6% in 2024.
According to a report with significant differences in growth across various regions, the outlook excludes China, with a projected decline of 0.9%. The growth forecast for China’s manufacturing output is 2.3% for 2024. Germany’s manufacturing sector will continue to struggle while South Korea, Singapore, and Taiwan are leading the global recovery in the semiconductor sector.
Europe faces a challenging year due to the energy crisis, supply chain disruption, and the ongoing economic impact of geopolitical tensions, including the war in Ukraine. Germany and Italy, key machinery producers in Europe, are expected to experience stagnation or decline due to high production costs and increased competition from lower-cost producers in Eastern Europe and Asia. As a result, Europe’s manufacturing output at a country level is projected to either stagnate or decline, making it one of the weakest-performing regions globally.
“We have made several important changes to our forecasts in this edition of the MIO which has meant that every growth curve is slightly different. However, on the whole our outlook from 2025 to 2028 is slightly better than last quarter.”
The Asia-Pacific region, particularly South Korea, Singapore, and Taiwan, are poised to play pivotal roles in the global recovery for the manufacturing sector. Following on from a challenging 2023 marked by supply chain disruptions and reduced demand, these three countries are expected to experience a significant resurgence as the semiconductor industry regains momentum. The United States, although facing a slowdown, is not likely to experience as severe a downturn as the European manufacturing sector. Thanks to the high amount of investment in infrastructure. The upcoming political changes may affect the country’s growth prospects.
The machinery manufacturing sector is expected to face a more challenging year in 2024, with European countries facing high interest rates, inflation, and energy costs, especially in Germany (a result of the reliance on Russian gas and the ongoing war in Ukraine), which has led to higher production costs.
Despite these challenges, some regions, especially in Asia, may see better performance due to investments in more advanced manufacturing technologies and automation, which are expected to bolster productivity and production for machinery sectors.
Interact Analysis predicts a more robust outlook for the global manufacturing sector from 2025 to 2028, with more stable growth anticipated across multiple regions as industries adapt to new economic realities.
