The growth of manufacturing in both developing and developed regions slowed in 2018, attributed largely to emerging trade and tariff barriers that constrain investment and future expansion. Despite the slowdown, the global share of manufacturing value added (MVA) in GDP increased marginally—from 15.9 per cent in 2008 to 16.5 per cent in 2018, when it began to plateau. In LDCs, the share of manufacturing in total GDP increased 2.5 per cent annually between 2015 and 2018. However, that still falls short of the pace needed to achieve a doubling of the MVA share in GDP by 2030, and calls for accelerated action. The disparities in industrial productivity between rich and poor nations remain stark. For instance, MVA per capita was only $114 in LDCs compared to $4,938 in Europe and Northern America, in 2018.

Small-scale industries are the backbone of industrial development in developing countries. With a relatively small amount of capital investment and a predominantly local resource base, small-scale industries generate a substantial amount of employment and self-employment. However, one of the biggest challenges those industries face is access to loans or lines of credit for everyday business activities. Adequate financing is crucial for those industries to grow, since it allows them to innovate, improve efficiency, expand to new markets and create new job opportunities. While 31.5 per cent of small-scale industries (manufacturing and services) worldwide benefit from loans or lines of credit, regional differences stand out. For instance, more than half of all small-scale industries in Latin America and the Caribbean receive those types of financial services, compared to 20.7 per cent in sub-Saharan Africa.

Recent years have seen a steady shift away from resource-based, low-tech manufacturing activities towards those that are medium-high- to high-tech. Those higher-tech manufacturing sectors are often reliant on the latest technologies and produce a wide array of consumer goods, from computers, televisions and other communications devices to appliances and other household equipment. The demand for such products tends to increase as income levels rise.

The share of medium-high- and high-tech industries in total MVA increased from 40.5 per cent in 2000 to 44.7 per cent in 2016, with large differences across regions. In Eastern and South-Eastern Asia and in Europe and Northern America, for example, over 47 per cent of total MVA came from higher-tech sectors in 2016. In contrast, the shares in Oceania (excluding Australia and New Zealand) and sub-Saharan Africa were only 1.9 per cent and 14.9 per cent, respectively. In sub-Saharan Africa, the proportion of medium-high- and high-tech MVA in total MVA actually fell between 2000 and 2016, but rose in all other regions.

Fixed-broadband Internet connections remain out of reach for many people. But coverage of mobile-cellular signals and mobile-broadband Internet has expanded rapidly, now reaching almost the entire global population. In 2018, 96 per cent of the world’s population lived within reach of a mobile-cellular signal, and 90 per cent of people could access the Internet through a third generation (3G) or higher-quality network. However, while most live within range of these signals, not all are able to take advantage of them. The cost of accessing mobile-cellular networks and mobile-broadband Internet remains too high for many, particularly the most disadvantaged and at-risk population groups. In fact, just over half of the world’s population is currently using the Internet, with rates much lower in LDCs (about 20 per cent).