Sector News

ICCA: Chemical Industry contributes $5.7 trillion to global GDP and supports 120 million jobs

March 12, 2019
Chemical Value Chain

A report released today [Monday] by the International Council of Chemical Associations (ICCA), in conjunction with the start of the Fourth United Nations Environmental Assembly taking place in Nairobi, says the chemical industry in 2017 made an estimated $5.7 trillion contribution to world GDP through direct, indirect, and induced impacts, equivalent to 7% of the world’s GDP, and supporting 120 million jobs worldwide.

ICCA commissioned Oxford Economics to provide a detailed assessment of the chemical industry’s contributions to the global economy. The report says that for every $1 generated by the chemical industry, a further $4.20 is generated elsewhere in the global economy. Companies in the chemical industry spent an estimated $3 trillion with their suppliers in 2017, buying goods and services used in the manufacture of their products. This supply chain spending contributed an estimated $2.6 trillion to global GDP and supported 60 million jobs.

The largest contributor to GDP and jobs was the Asia Pacific chemical industry, generating 45% of the industry’s total annual economic value and 69% of all jobs supported. Europe made the next most important contribution with $1.3 trillion total GDP contribution and 19 million jobs supported, followed by North America at $866 billion total GDP contribution and 6 million jobs supported.

The global chemical industry invested an estimated $51 billion in R&D in 2017, supporting 1.7 million jobs and $92 billion in economic activity. China was home to the largest chemical R&D spend, with an investment of $14.6 billion, followed by the United States and Japan, with a $12.1 billion and a $6.9 billion investment, respectively. Germany’s spend on R&D reached $4.6 billion, followed by South Korea at $2.2 billion, France $2.1 billion, India $1.8 billion, and the United Kingdom $1.2 billion.

“This report makes clear that the chemical industry is an irreplaceable contributor to global GDP, a source of skilled employment opportunities and a major enabler of progress in the environmental, social, and economic aspects of sustainable development as reflected in the United Nation’s Sustainable Development Goals,” said Cal Dooley, ICCA council secretary and president and CEO of the ACC.

“This new analysis underscores the essential role that the chemical industry plays in driving economic growth and creating opportunity for millions of people around the world, but the chemical industry’s impact goes beyond economic value,” said Marco Mensink, director general of Cefic. “Working in partnership with United Nations Environment through the Strategic Approach to Chemicals Management, we are deeply committed to building capacity to safely manage chemicals through their production, transport, use, and disposal, and have held over 230 workshops in 45 countries.”

By Natasha Alperowicz

Source: Chemical Week

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