How trade war slowed down global manufacturing growth in Q1 2019
Joy Obakeye
The emerging trade and tariff barriers involving the United States and China, as well as the European Union (EU), have been identified as reasons for the continuous slowdown in global manufacturing growth evident since the end of 2017.
This is according to a report by the United Nations Industrial Development Organisation (UNIDO).
It said that the first quarter of 2019, witnessed significant slow growths, which exposed markets to a significant amount of uncertainty, which in turn has affected investment and future growth.
The manufacturing output growth rates of industrialised economies rose by a mere 0.4 per cent, compared to the same period in the previous year.
It noted that manufacturing growth rates have consistently declined each quarter, dropping from 3.5 per cent at the end of 2017.
Figures presented show that North America recorded a the year-on-year growth rate of 1.8 per cent, down from 2.5 per cent in the fourth quarter of 2018.
Against the backdrop of the uncertainty about the timing of the United Kingdom’s withdrawal from the European Union (Brexit) and about the nature of their future economic relationship, data show that the manufacturing output of industrialised economies in Europe grew by just 0.3 per cent.
