CEIC News@lert: ASEAN Economic Monitor: Launch of Manufacturing Sector

CEIC News@lert/World Trend Plus - August 1, 2016 The CEIC World Trend Plus team is pleased to announce the launch of a new sector: Manufacturing in the ASEAN Economic Monitor. The manufacturing sector is an integral contributor to GDP growth for most economies, especially in the developing economies. The sector is most commonly associated with industrialization, an oft-cited pre-requisite towards advancing economic growth in emerging or frontier economies. CEIC has compiled a list of key indicators, such as the Industrial Production Index (IPI), Capacity Utilization Rate and Exports of Manufactured Products. Policymakers and analysts monitor trends in the IPI to determine the output and health of the manufacturing sector, as well as the wider economy given the ripple effects that the manufacturing sector has on other sectors in many countries. To facilitate cross-country comparisons, CEIC provides monthly IPIs on an individual country basis, and on an aggregated regional basis. These are standardised into the same base year (2002=100). CEIC generates ASEAN aggregates by rebasing, summing and/or computing ratios for the statistics of the respective member states that comprise the AEC, A6, A5 and A4 aggregates. CHART ALERT The IPI of ASEAN shows an upward trend since 2012. The growth of the manufacturing sector has served as a driver for economic expansion given the higher value-added contribution relative to the extractive sectors. This is especially pertinent given the development of regional supply chains within ASEAN, as production and distribution channels span across various ASEAN countries, driving economies of scale, by drawing upon a large, low-cost talent pool, facilitating the movement of raw materials and intermediate goods, and optimizing production costs, hence increasing overall efficiency. The rise of ASEAN as a key manufacturing hub has attracted large foreign investments in the sector, with various manufacturing plants set up across Southeast Asia. Early participants in the industrialization of the AEC were the ASEAN-5 which quickly established a strong position in the market for semiconductors, metals and motor vehicles, among others. The continued growth of the AEC’s manufacturing sector – along with its implications for domestic infrastructures, trade, employment and foreign investments – mean that manufacturing sector data are important for any meaningful economic analysis of the ASEAN region. Discuss this post and many other topics in our LinkedIn Group (you must be a LinkedIn member to participate). Request a Free Trial Subscription. Back to Blog
1st August 2016 CEIC News@lert: ASEAN Economic Monitor: Launch of Manufacturing Sector