FOCUS – Gold prices generates $210 bln for global GDP – WGC

London 08/10/2013 – The gold industry generated more than $210 billion for the global economy in 2012, a study by the World Gold Council (WGC) and Price Waterhouse Coopers (PwC) published on Tuesday showed.

This makes the industry’s contribution to the world economy roughly equal to the GDP of the Republic of Ireland, the Czech Republic or Beijing.

Speaking at the launch of the report in London, Terry Heymann, director of gold development at the WGC, said there is often a lack of understanding in the importance of gold in the economies where they are mined, with the impact amplified in developing countries.

“Gold is not always as well understood as it should be,” he said. “It can be a transformational driving developing countries forward.”

According to the report, the 15 largest gold-producing countries – which produce around 75 percent of the global total – enjoy significant benefits from the extraction of their ore, with an estimated 527,900 people directly employed by the industry.

For some of these countries, gold is a significant source of exports, accounting for 36 percent of all Tanzania’s exports and more than a quarter of that of Ghana and Papua New Guinea.

In many of these countries, it also makes up a significant part of wealth creation, accounting for 15 percent of the GDP in Papua New Guinea, eight percent in Ghana and six percent in Tanzania.

On the consumption side, where the 13 largest gold consumers account for about 75 percent of fabrication, activities relating directly to the gold industry generated up to $110 billion.

Value added in producing countries was placed at $78.4 billion and that from gold recycling at about $25 billion.

(Editing by Mark Shaw)

Eddie van der Walt

About Eddie van der Walt

London-based, South African-born metals markets reporter, currently focusing on precious metals and the London Metal Exchange. All that glitters must be sold. Twitter: @EvdW