The International Council of Chemical Associations (ICCA) today, in tandem with the start of the Fourth United Nations Environment Assembly (UNEA-4), released an analysis of the contributions of the chemical industry to the world economy: Global Chemical Industry – Catalyzing Growth and Addressing Our World’s Sustainability Challenges. According to the report, nearly every good-producing sector is affected by the chemical industry, contributing an estimated $5.7 trillion to the world’s Gross Domestic Product (GDP) through direct, indirect and induced impacts, equivalent to 7% of the world’s GDP, and supporting 120 million jobs worldwide.
Key Highlights of the Report
- The chemical industry directly added $1.1 trillion to world GDP, employing 15 million people, making it the fifth largest manufacturing sector in the world.
- For every $1 generated by the chemical industry, a further $4.20 is generated elsewhere in the global economy.
- Chemical industry companies spent an estimated $3 trillion in 2017 with their suppliers buying goods and services used to manufacture their products. This expenditure on the supply chain contributed an estimated US$ 2.6 trillion to global GDP, supporting 60 million jobs.
- The global chemical industry has invested an estimated $51 billion in R&D, supporting 1.7 million jobs and $92 billion in economic activity.
- The Asia-Pacific chemical industry is the largest contributor to GDP and jobs, generating 45% of the total annual economic value of the industry, and supporting 69% of all jobs.
- The next major contribution was made by Europe ($ 1.3 trillion in total GDP contribution, 19 million jobs supported) followed by North America ($ 866 billion in total GDP contribution, 6 million jobs supported).
“The innovations developed and produced by the chemical industry’s longstanding presence worldwide have helped turn the tide of human history. Over time, chemical manufacturers have become an integral part of the global economy and a critical enabler of technologies that improve people’s lives around the globe,” said Cal Dooley, ICCA Council Secretary and President and CEO of the American Chemistry Council (ACC). “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.”
“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, European Chemical Industry (CEFIC). “Working in partnership with United Nations Environment through the Strategic Approach to Chemicals Management (SAICM), 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.”
“The products that the chemical industry manufactures change people’s lives by providing clean water and making possible renewable energy sources, advanced medical care, stable and nutritious food supplies, recycling technologies and more,” said Hiroshi Watanabe, Director General, Japan Chemical Industry Association (JCIA). “By capturing the economic value of our operations, research and products, we now see the full extent of our industry’s positive impact on society today and the important role we are playing in creating a pathway to a more sustainable future.”
Source: ICCA