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.

Click here to download the full report now

Our economic consulting team are world leaders in quantitative economic analysis, working with clients around the globe and across sectors to build models, forecast markets and evaluate interventions using state-of-the art techniques.

Lead consultants on this project were:

Oxford Economics’ team is expert at applying advanced economic tools that provide valuable insights into today’s most pressing business, financial,and policy issues.

To find out more about our capabilities, contact:

EMEA
Pete Collings
+44 (0)203 910 8078
Email

Americas
Hamilton Galloway
+1 (646) 503 3068
Email

Asia
Christie Tang
+852 3974 8841
Email

Related Services

Post

Industry Outlook 2030+ | The Semiconductor Industry

Semiconductors are central to Europe’s digital and green transformation and therefore its future competitiveness. The Industry Outlook 2030+ The Semiconductor Industry examines the status quo and future development of the semiconductor industry in Europe and Germany, the most important European semiconductor location.

Find Out More

Post

The State of the Creator Economy – Assessing the economic, societal, and cultural impact of YouTube in the US in 2021

This study presents an updated assessment of YouTube’s contribution to US GDP and employment, and its broader impact on society and culture.

Find Out More

Post

European Tourism 2022 – Trends & Prospects (Q2/2022)

Destinations across Europe continue to relax travel restrictions as concerns over Covid-19 wither away, enabling the release of strong (short- and mid-haul) pent-up demand. However, skyrocketing energy prices are pushing travel costs yet higher, prompting people to travel closer to home or consider cost-saving options. It remains to be seen how households (especially lower-income earners) will make a trade-off on travel spending this summer amidst consumer price hikes and squeezed disposable incomes.

Find Out More