Brussels, 17/02/2014 (Agence Europe) - The 2013 report on the industrial structure of the EU has stressed the growing need to include industrial competitiveness in other strategic fields.
Like several other studies, this report, which was presented by the Commission on 17 February, shows that the fragile upturn in 2010 and 2011 has been interrupted by a downturn in the economy and that the industries of the EU have suffered a double-dip recession. Although it also confirms that the manufacturing industries' share of GDP dropped to 15% in 2012, the total figure for manufacturing in the EU masks considerable differences between the countries, with a strong upturn observed in Romania, Poland, Slovakia and the Baltic states. The study also stresses the differences between the sectors: high-technology, where the bulk of productivity increases are focused, the pharmaceutical industry and base products have ridden the crisis out fairly well, whilst construction and the manufacturing and mining industries have been hard hit.
This report also shows that growth has been faster in the services sector than in manufacturing: market services grew 1.7% a year on average between 2000 and 2012, now representing half of EU GDP, and the share of non-market services (i.e. those provided by the public sector) has also risen, reaching 23% of GDP in 2012. Between 2001 and 2010, employment in services rose, falling in manufacturing over the same period. On the other hand, relations between manufacturing and services are mutually beneficial, as businesses in the manufacturing sector use services in their commercial processes, the design and sales of products and for cross-cutting activities (accounting and logistics). This growing interdependency is accompanied by a “carrying effect” of industry for services which would be less saleable otherwise, a stimulating effect on innovation and the qualitative improvement of service activities.
Lastly, the document shows that global value chains are of increasing importance for EU industry, which remains the main actor in global trade, for goods and services as well as investment flows. However, it also shows that foreign direct investment (FDI), which is the lifeblood of the manufacturing industry, has greatly suffered. The member states as a whole are responsible for a large share of global FDI flows (around 22% of incoming and 30% of outgoing flows), but both incoming and outgoing flows were hard hit by the crisis in 2010. (EH/transl.fl)