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

comments closed

Related News

September 12, 2021

Johnson Matthey announces new Hydrogen Technology business

Chemical Value Chain

The new Hydrogen Technologies business will be headed up by Ralph Calmes, who has been appointed Managing Director Hydrogen Technologies. Ralph, who previously led JM’s Platinum Group Metal Services business, will take up this role effective 1 October with both Eugene McKenna (Green Hydrogen) and Jo Godden (Fuel Cells) reporting directly to him. Ralph will report to Group Chief Executive Robert Macleod.

September 12, 2021

CEO Stefan Doboczky will not extend contract and will step down at end of third quarter 2021

Chemical Value Chain

The Supervisory Board of Lenzing AG, the world’s leading producer of wood-based cellulosic fibers, has come to a mutual agreement with its longstanding Chief Executive Officer Stefan Doboczky to end his contract.

September 12, 2021

Europe’s plastics industry calls for mandatory EU recycled content target for plastics packaging of 30% by 2030

Chemical Value Chain

PlasticsEurope says that Europe’s plastics producers support the European Commission’s previously announced proposal for a mandatory EU recycled content target for plastics packaging, as defined in the Commission’s Packaging and Packaging Waste Directive (PPWD). This target should be 30% for plastics packaging by 2030, PlasticsEurope says.

Send this to a friend