10 Countries With The Highest Industrial Outputs In The World
By Victor Kiprop on August 27 2019 in World Facts
In 2016 china exported goods worth $2.342 trillion. Editorial credit: Tommy Studio / Shutterstock.com
In the past decade, the global economy has improved significantly. Compared to previous decades, developing countries are doing better and are contributing significantly to the global product output. The United States still holds the title of the world’s largest economy estimated at $18 trillion, China ranks second at $11 trillion, while Japan ranks third at $4.4 trillion.
The three countries account for an estimated 45% of the global economy. The Chinese economy is rising at a speedy rate, and the Centre for Economics and Business Research (CEBR) forecasts that by 2029 the Chinese economy will surpass the US as the world’s largest economy. The rise of China's economy can be directly attributed to the increase in the country’s output.
China has the world’s largest industrial output. In 2016 it is estimated that the country produced $4.566 trillion of industrial output. Strong factory output, stable retail sales, and an ever-growing export market have helped propel China meet its economic expectations.
In the third quarter of 2017, the GDP grew by 6.8%. The industrial output grew by 6.6% in September 2017 compared to a year earlier. In 2016 china exported goods worth $2.342 trillion, it was only surpassed by the European Union which exported $2.659 trillion.
The European Union ranked just behind China with an industrial output of $4.184 trillion.
Despite being the largest economy, the United States ranked behind China and the European Union in terms of industrial output. In 2016 the U.S industrial output totaled $3.602 trillion. In the same year, the U.S exported goods worth $1.620 trillion.
The third quarter of 2016 witnessed a real output of $1.92 trillion the highest ever in a quarter since the Great Recession of 2008. The manufacturing sector employed more than $12.4 million in March 2017.
The largest exports by the US were transportation equipment, chemicals, electronics and computers, and non-electrical machinery.
Japan ranks third in the global ranking, and Asia’s second state. A decade ago, Japan was the second largest economy until it was surpassed by China. In the recent past, Japan's economy economic might has been put into question particular after the nuclear meltdown in Fukushima and its demographic composition.
In 2016 Japan’s total industrial output was $1.368 while its export revenue totaled $683.85. Japan has the largest public debt as a percentage of the GDP, a situation that is preventing the private investments in the country.
The disparity in productivity in the various sectors of the economy continues to widen hindering the growth of the export-oriented economy.
Germany is Europe’s largest economy and the fourth largest in the world. It is also Europe’s largest industrial producer. In 2016 Germany’s industrial output totaled $1.050 trillion. Germany witnessed the highest surge in industrial output in August 2017, the largest since 2010.
The growth in industrial output is expected to be solid throughout the third quarter of the year. The manufacturing output increased by 3.2% as industries churned out more consumer and intermediate goods. The automobile industry was the key driver behind the surgeon industrial output.
Since the beginning of the millennium, India has proved itself as an economic powerhouse. The country has emerged to be the world’s fastest economy according to the CSO and the IMF. The world’s seventh largest economy is expected to be among the three top economies in the next two decades.
The Indian economy is expected to grow by 6.7 percent for the year 2017-18. By the end of 2018, the figure is expected to rise to 7.2 percent. The manufacturing industry is among strong pillars. In 2016 the country’s industrial production produced about $672 billion. Between April and June 2017 the economy grew by 5.
7 percent year-on-year.
Although not among the ten largest economies, South Korea’s industrial output continues to grow and ranks better some top economies. In 2016 the industrial output totaled $531 billion. The industrial output rose 2.
7 percent year on year in August, bolstered by growth in the technological, manufacturing, and automobile industries. Asian’s fourth-largest economy has witnessed a surge in exports of chipsets and exports to China which grew by 13.5%. The consumer index grew by 1.
8% as of October 2017 compared to the same time a year ago.
The United Kingdom is Europe’s second largest industrial producer after Germany. In 2016 the UK produced $505 billion from its industries.
Britain’s choice to leave the EU has left uncertainties in the economy as scholars and economists try to examine impacts of the move on the economy. Industrial output in the UK has maintained a 23-year boom streak leading to the growth of the wider economy.
The automobile industry grew by 3pc while the mining and quarrying grew by 0.7pc in September. Industrial outputs in France and Italy totaled $478 and $442 billion respectively.
The World's Largest Economies
The United States is still the world’s largest economy with a nominal GDP of $18 trillion. The European Union ranks second with $16.8 trillion while China ranks third with $11.2 trillion. Japan and Germany rank third and fourth respectively with $4.4 and $3.5 trillion respectively.
The UK, France, India, Italy, and Brazil complete the top ten in the order. Nigeria is Africa’s largest economy with a GDP of $569 Billion followed by South Africa at $350 billion.
Tuvalu is the world’s smallest economy with a GDP of $38 million, Montserrat ($63m), Kiribati ($180 m), Nauru ($182m), and Marshall Islands ($209 m) complete the five smallest economies.
Board of Governors of the Federal Reserve System
Release Date: November 17, 2020
Revision of Industrial Production and Capacity Utilization Notice Below
Industrial production rose 1.1 percent in October. The index has recovered much of its 16.5 percent decline from February to April, but output in October was still 5.6 percent lower than its pre-pandemic February level. After edging up 0.
1 percent in September, manufacturing output increased 1.0 percent in October. The output of utilities rose 3.9 percent, while the output at mines declined 0.6 percent to a level that was 14.4 percent below its year-earlier reading. At 103.
2 percent of its 2012 average, total industrial production was 5.3 percent lower in October than it was a year earlier. Capacity utilization for the industrial sector increased 0.8 percentage point in October to 72.8 percent, a rate that is 7.
0 percentage points below its long-run (1972–2019) average but 8.6 percentage points above its low in April.
Every major market group posted gains in October. The output of consumer goods rose 0.8 percent, with broad-based gains among its components. After falling more than 17 percent between February and April, the index for consumer goods rebounded quickly and in October it was within 1.
7 percent of its February level. The production of business equipment moved up 0.6 percent in October, but it was still 7.3 percent lower than it was in February. The indexes for defense and space equipment, construction supplies, business supplies, and materials each advanced 1.
0 percent or more in October.
Manufacturing output increased 1.0 percent in October; even so, it was about 5 percent below its level in February. The index for durable manufacturing stepped up 0.
9 percent, as small drops in the indexes for furniture and related products, fabricated metal products, and motor vehicles and parts were outweighed by gains elsewhere, especially for aerospace and miscellaneous transportation equipment and for miscellaneous manufacturing. The index for nondurables rose 1.
2 percent; nearly all of its components posted gains. The output of other manufacturing (publishing and logging) fell 1.5 percent.
The index for utilities moved up 3.9 percent in October, with an increase for electric utilities more than offsetting a decrease for natural gas utilities. Mining output declined 0.6 percent, as oil and gas extraction fell back in October after posting a gain in September.
Capacity utilization for manufacturing rose 0.7 percentage point in October to 71.7 percent, 11.6 percentage points higher than its trough in April but still 6.5 percentage points below its long-run average.
The utilization rate for mining declined to 77.9 percent, remaining below its long-run average of 87.2 percent. The operating rate for utilities increased to 72.7 percent, a rate that is 12.
5 percentage points below its long-run average.
Revision of Industrial Production and Capacity Utilization
The Federal Reserve Board plans to issue its annual revision to the indexes of industrial production (IP) and the related measures of capacity utilization in early 2021.
New annual benchmark data for manufacturing for 2017 and 2018 will be incorporated, as well as other annual data, including information on the mining of metallic and nonmetallic minerals (except fuels).
The weights for market-group splits of the industry-level indexes will be updated with information from the 2012 benchmark input-output accounts from the U.S. Bureau of Economic Analysis.
The updated IP indexes will include revisions to the monthly indicator (either product data or input data) and to seasonal factors for each industry. In addition, the estimation methods for some series may be changed. Any modifications to the methods for estimating the output of an industry will affect the index from 1972 to the present.
Capacity and capacity utilization will be revised to incorporate data for manufacturing through the fourth quarter of 2019 from the U.S. Census Bureau's Quarterly Survey of Plant Capacity Utilization, along with new data on capacity from the U.S. Geological Survey, the U.S. Department of Energy, and other organizations.
G.17 Release Tables:
- Summary: Industrial Production and Capacity Utilization
- Chart 1: Industrial Production, Capacity, and Capacity Utilization
- Chart 2: Industrial Production and Capacity Utilization
- Chart 3: Industrial Production of Selected Industries
- Table 1: Industrial Production: Market and Industry Groups (percent change)
- Table 2: Industrial Production: Special Aggregates and Selected Detail (percent change)
- Table 3: Motor Vehicle Assemblies
- Table 4: Industrial Production Indexes: Market and Industry Group Summary
- Table 5: Industrial Production Indexes: Special Aggregates
- Table 6: Diffusion Indexes of Industrial Production
- Table 7: Capacity Utilization: Manufacturing, Mining, and Utilities
- Table 8: Industrial Capacity: Manufacturing, Mining, and Utilities (percent change)
- Table 9: Industrial Production: Gross Value of Products and Nonindustrial Supplies
- Table 10: Gross-Value-Weighted Industrial Production: Stage-of-Process Groups
- Table 11: Historical Statistics for IP, Capacity, and Utilization: Total Industry
- Table 12: Historical Statistics for IP, Capacity, and Utilization: Manufacturing
- Table 13: Historical Statistics for IP, Capacity, and Utilization: Total Industry excluding Selected High-Technology Industries
- Table 14: Historical Statistics for IP, Capacity, and Utilization: Manufacturing excluding Selected High-Technology Industries
- Table 15: Industrial Production: Reliability Estimates
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Last Update: November 17, 2020