Is manufacturing the solution for developing countries?

manufacturingThe economies of the United States and Europe have been in a recession for the last 5-10 years, while countries like Brazil, China, India, and other developing economies have seen an unprecedented growth rate during the same time. According to a study from the McKinsey Institute, manufacturing employment and output follows an inverted “U” shape, rapidly increases reaching its peak contribution to a country’s economy at 20-35% of GDP . While this figure is impressive and developing countries like Brazil, Panama, Chile and others in Latin America can still have a substantial opportunity to reach their peak, the transformation from a manufacturing to a service economy can present additional challenges as well as opportunities that need to be taken into consideration as part of their overall development strategies.

For additional information please read the original study at McKinsey