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Seven Industrial Sectors That Make Up the IEA Industrial Index

The International Monetary Fund and the World Bank have identified seven sectors of the global economy that they believe to be vital to the economic development and future stability of all nations. These are services, agricultural, forestry, production, construction and services industries. With these sectors separated into two categories the IEA and the World Bank consider the size, composition and income of the economy in relation to the health of the sector. While the World Bank focuses on providing financial assistance to nations in need, the IEA emphasizes the creation of more manufacturing industries in order to generate more income and employment for citizens around the world.

As is evident in any list of the world’s most developed economies, most of the items being manufactured and churned out by the major players of the global economy are manufactured in industrialized nations. Most of the world’s large industrial enterprises either produce the bulk of their items themselves or contract out the production of their goods to companies located in low-income countries such as China and India. However, even though low-income countries may produce essential goods, like electrical equipment and building products, many cannot compete with the larger corporations in terms of quality, output and profit. For this reason most large industrial outfits either import their raw materials or export their finished products, which is where countries with natural resources and industrial capital come into play.

The transportation sector is one of the primary constituents of the industrials sector. Virtually every piece of freight or passenger transportation in the world is either used in a transport capacity or is destined for transportation. Some sectors are much more efficient than others in terms of getting their products to their destinations and vice versa. Some transportation sectors that are very important to the worldwide economy include petroleum refining, chemical processing, coal mining, agricultural chemicals and water transportation. In order for the economy to grow, it is necessary to tap into these various sectors and the transport industry is one of the easiest ways of doing this.