Euromonitor International forecasts the global manufacturing sector to show slower growth of 2.1% in real terms in 2024, down from 2.6% in 2023. 

Slower global economic growth and, consequently, stagnant demand for B2B goods will affect the performance of the manufacturing sector. 

From this market research company’s perspective, manufacturers will continue to face labor market issues, potential trade restrictions and stricter environmental regulations that will add to slower growth.

However, the relocation of manufacturing operations will provide new opportunities for growth in 2024, especially in developed economies. 

Manufacturing sector

In particular, Euromonitor predicts that the high-tech goods sector will lead the transformation of production networks in 2024 and, in turn, support B2B demand for various goods and services, ranging from input components to construction services.

This industry is involved in the production of physical goods through the processing, transformation and assembly of raw materials. 

Consequently, this sector plays a crucial role in economic development and often involves the use of machinery, technology and skilled labor to produce tangible products.

Global GDP

According to Euromonitor’s angle, the global economic outlook for 2024 is marked by a further slowdown in real GDP growth, with expectations pegged at 2.7 percent. 

It also projects that higher interest rates for longer and a drying up of savings will slow consumer spending and reduce business investment. 

This will weaken labor markets and the service sector, the key pillars of once-resilient growth, in addition to a continued weak backdrop in global manufacturing and trade.

Major economies, including the United States, the eurozone and China, will face distinct challenges that will keep growth subdued. 

On the positive side, adds Euromonitor, the Asia Pacific region will remain the main source of global growth, with increasing momentum in many economies, including India, Vietnam and Indonesia. 

Another positive factor is the expected notable moderation in inflation globally in 2024 amid a slowdown in economic activity. 

However, he believes the global economy continues to face unusually high uncertainty, as well as risks and opportunities due to a number of transformative developments, including rising geopolitical tensions and conflicts, the resumption of globalization, and technological advances, particularly in artificial intelligence.