The chemical industry contributes US$5.7 trillion to global GDP

On March 11, at the opening of the Fourth United Nations Environment Conference (UNEA-4), the International Council of Chemical Associations (ICCA) released an analysis on the contribution of the chemical industry to the global economy: The Global Chemical Industry: Catalyzing Growth and Addressing OurWorld’s Sustainability Challenges.

The report shows that the chemical industry involves almost all production industries, through direct, indirect and induced effects, it is estimated that it has contributed 5.7 trillion U.S. dollars (7% of global GDP) to global gross domestic product (GDP). 120 million jobs are provided within.

CalDooley, Secretary of the ICCA Council and President and *Executive Officer of the American Chemistry Council (ACC), said: “The chemical industry’s long-term business development and innovations around the world have helped turn the tide of human history. Over time, chemical manufacturers have become an indispensable part of the global economy, and at the same time have become a key enabler of technologies that improve the lives of people around the world. This report clearly shows that the chemical industry’s contribution to global GDP is indispensable Instead, it is the source of technical employment opportunities and the main driving factor for progress in the environmental, social, and economic aspects of sustainable development as reflected in the United Nations Sustainable Development Goals.”

The key findings of the report include:

In direct terms, the chemical industry has added 1.1 trillion US dollars to global GDP and employs 15 million people, making it the fifth largest manufacturing industry in the world.

For every US dollar generated by the chemical industry, another US$4.20 is generated elsewhere in the global economy.

In 2017, chemical companies spent an estimated US$3 trillion on suppliers to purchase goods and services for product manufacturing. Supply chain spending is estimated to contribute 2.6 trillion US dollars to global GDP and provide 60 million jobs.

The global chemical industry is estimated to have invested 51 billion U.S. dollars in research and development, provided 1.7 million jobs, and provided support for 92 billion U.S. dollars in economic activity.

The largest contribution to GDP and employment is the chemical industry in the Asia-Pacific region, which creates 45% of the industry’s total annual economic value and provides 69% of jobs. The important contribution made by Europe followed closely behind (USD 1.3 trillion in GDP contribution, 19 million jobs), followed by North America (USD 866 billion in GDP contribution, 6 million jobs).

Marco Mensink, Chairman of the European Chemical Industry Council, said: “This new analysis highlights the important role of the chemical industry in driving economic growth and creating opportunities for millions of people around the world. The impact far exceeds the economic value. Through the Strategic Approach to Chemical Management (SAICM) and the United Nations Environment Programme, we are fully committed to building the ability to safely manage chemicals through the production, transportation, use and disposal of chemicals, and More than 230 seminars have been held in 45 countries.”

ICCA commissioned Oxford Economics (Oxford Economics) to evaluate in detail the contribution of the chemical industry to the global economy. The report aims to comprehensively examine the economic footprint of the chemical industry-chemical production not only provides support for the activities of the chemical industry (direct impact), but also for the activities of many other industries throughout the supply chain (indirect impact supported by the procurement of semi-finished products) And wage financing effects (wage effects caused by the consumption expenditures of workers employed by the chemical industry and its suppliers) provide support.

Hiroshi Watanabe, Chairman of the Japan Chemical Industry Association, said: “The products manufactured by the chemical industry change people’s lives by providing clean water and possible renewable energy, advanced medical treatment, stable and nutritious food supply, and recycling technology. The economic value of our business, research and products, we now see the full positive impact of our industry on today’s society and the important role we play in creating the path to a more sustainable future.

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