Ungated Post | 11 Jul 2019
The impact of the European steel industry on the EU economy
Oxford Economics’ analysis demonstrates the importance of the EU steel industry, which supports an extensive supply chain across the continent, and facilitates highly-valued work in key customer sectors – including metal product, machinery and motor vehicle manufacturing, as well as construction.
This study updated previous work for Eurofer, and showed that, in 2017, the EU steel industry’s own (‘direct’) contribution to EU-wide GVA was €25 billion, associated with some 328,000 workers and €10 billion in tax revenues.Taking into account ‘indirect’ (supply chain) and ‘induced’ (wage-funded expenditure) effects too, the industry’s total contribution to EU GVA in that year was £148 billion – more than the GVA of the Berlin region – supporting 2.6 million jobs and €60 billion of tax.
This year’s analysis also looked at the economic impact of four key customer sectors, namely manufacture of metal products, mechanical machinery, and motor vehicles, plus construction. Excluding impacts on and via each other, and on and via the steel sector, the total combined impact of these sectors, through their direct, indirect and induced channels, was found to be €3.4 trillion in terms of EU-wide GVA, supporting 62 million jobs and €1.35 trillion of tax revenues. The share of these impacts arguably ‘enabled by’ the use of EU-produced steel, taking into account the share of those inputs in a wider ‘steel and alternative inputs’ grouping, was put at close to a third.
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