Proportionally, however, gold mining has the most substantial impact on growth and wealth creation in developing countries; greatest in Papua New Guinea (15% of GDP), followed by Ghana (8% of GDP) and Tanzania (6% of GDP)
LONDON: Gold mining makes a consistently positive contribution to global economic growth and 15 large gold producing countries generated US $78.4 bn of gross value added in 2012, approximately equal ot the GDP of Ecuador or Azerbaijan or 30% of the estimated GDP of Shanghai.
A new research report titled Economic Impact of Gold preparted by Price Waterhouse Coopers (PwC) for World Gold Council shows gold supply reached 4,477 tons in 2012, approximately two-thirds coming from mining and one third from recycling of gold.
Proportionally, however, gold mining has the most substantial impact on growth and wealth creation in developing countries; greatest in Papua New Guinea (15% of GDP), followed by Ghana (8% of GDP) and Tanzania (6% of GDP). For these nations, gold is also a major source of exports and, therefore, foreign exchange earnings. In 2012, gold provided 36% of all Tanzanian exports and 26% of the exports of Ghana and Papua New Guinea.
According to Randall Oliphant, Executive Chairman of WGC, the report is groundbreaking in its scope and timely in its analysis. "It addresses, for the first time, the direct economic impact of gold on the global economy, and does so in a way which is objective in stance and rigorousin its treatment of complex data. The report is unique in looking at an entire value chain, including gold mining, refining, and fabrication and consumption. It helps us understand the fundamental role that gold plays in advancing economic development and ultimately the needs of society."
The research reveals that supply and demand for gold makes a consistently positive contribution to global economic growth.
A key finding of the research is the significance of gold mining to the economies of developing nations. PwC estimate that gold mining made an economic contribution of over US$78.4 billion to the economies of the top 15 mining countries in 2012.
Key findings:
Global gold supply reached 4,477 tonnes in 2012 with approximately two thirds coming from mining and onethird from the recycling of gold.
- The 15 largest gold producing countries, which accounted for around three quarters of global output,directly generated US$78.4 billion of gross value added (GVA) in 2012 – approximately equal to the GDPof Ecuador or Azerbaijan or 30% of the estimated GDP of Shanghai.
-Large scale, formal gold mining in the top 15 producing countries directly employed an estimated527,900 people in 2012.
-Gold mining is a significant source of exports for some countries: in 2012, gold exports were 36% of allTanzanian exports and 26% of exports in Ghana and Papua New Guinea.
-Limited data are available on the scale of the contribution of gold mining to the public finances: suchevidence as exists suggests that mining royalties are only a small proportion of the total fiscalcontribution of gold mining companies.
-The estimated GVA of global gold recycling is between US$23.4 billion and US$27.6 billion.-The GVA per tonne of recycled gold is approximately US$16 million compared with approximatelyUS$36 million for gold produced from mines.
In 2012, investment demand (consisting of bar and coin and gold-backed exchange traded funds (ETFs))accounted for 35% of global gold demand, central bank gold purchases accounted for 12%, jewellery accountedfor 43% and use in technology/manufacturing accounted for around 10% of gold demand.
-The 13 largest gold consuming countries in 2012 accounted for 75% of gold used for fabrication and 81%of gold used for (final) consumption, either in the form of jewellery or investment products such as smallbars and coins.
-Their activities directly generate up to USS110 billion of GVA – approximately equal to the GDP ofBangladesh or half the GDP of Hong Kong or Singapore.
-The direct GVA associated with the fabrication of small bar and coin is estimated to be US$13.3 billionacross the top 13 consuming countries whilst the direct GVA associated with consumption is estimated tobe US$38.3 billion: these estimates are not additional since the estimated GVA based on fabrication willbe included in the consumption based estimate.
-The direct GVA attributable to gold jewellery fabrication and consumption across the top 13 goldconsuming countries is estimated at US$69.8 billion.
-The direct GVA attributable to gold’s use in technology fabrication is estimated at almost US$4 billion(excluding the value generated by the retail component of these goods).Overall, the GVA associated with the supply of and demand for gold is estimated to be in excess of US$210billion across those countries in scope of this analysis: this means it is similar to the GDP of the Republic ofIreland or the Czech Republic or Beijing.
courtesy of bullionstreet
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