Industrial Sector Contribution to Overall Economic Growth in Modern World Practice

Abstract

The changes in the contribution of the manufacturing to national GDP (Manufacturing Value Added (MVA) as a share of GDP (%)) are analyzed on the example of the 50 leading countries by industrial output since the beginning of the XXI century. The paper is aimed at determining new trends in the global economic landscape basing on the obtained data. Therefore, three groups of countries by the share of MVA to GDP are singled out: de-industrialized (USA, Great Britain, etc.); adherents of traditional industrial specialization with practically unchanged share of the manufacturing sector in the economy over 2004-2021 (Japan, Germany, Switzerland); and countries with sharply increased industrial growth over the past two decades (Turkey, Bangladesh, Iran). There is an undeniable correlation between the presence of industrial base and overall economic growth. Of the 28 countries that achieved double-digit annual GDP growth in 2021, 5 are in the top 50 of the world industrial ranking. 17 leading industrial countries outperformed the global average GDP growth rate in 2021, and many countries achieved their best results in recent years. For example, Russia’s GDP growth (4.7%) was the highest since 2008, and Saudi Arabia’s (3.2%) since 2015. Based on the findings, possible adjustments in Russia’s industrial policy under sanctions are suggested.