FocusCefic sees EU chems slowdown in 2008

08 November 2007 15:09  [Source: ICIS news]

By Mark Watts

 

LONDON (ICSI news)--The EU chemicals industry is expected to experience a slowdown in 2008 along with a cooling down of the world economy, the European Chemical Industry Council (Cefic) said on Thursday.

 

Cefic said the industry may reach a growth rate of around 1.9% in 2008, lower than the 2.6% expected for 2007 and the 2.1% increase last year.

 

“The 2007 growth figure lies above the average growth rate over the last five years, which is due in part to recovery from technical problems in several petrochemical installations in 2006,” said Cefic in a statement.

 

An output growth of 2.3% was expected in 2008 for the EU chemical industry as a whole, including pharmaceuticals, moving down from 3% in 2007.

 

“The decline in 2008 would be caused by the dampening effects already existing in 2007, but materialising only with some months’ delay, and a general cooling down of the world economy,” said Cefic.

 

During the first seven months of 2007, output from the EU chemicals industry – excluding pharmaceuticals – rose by 2.7% year-on-year, while Cefic’s chemical business confidence indicator remained at a high level until losing momentum on October.

 

“Accelerated growth in chemicals is partly based on strong growth rates in industry in general and especially in important chemical downstream user industries, such as automotive or machinery and equipment,” it said.

 

Cefic said all chemical sectors benefited from a relatively good economic environment in the EU. Domestic demand remained strong and exports increased despite the weakening US dollar.

 

It added that high economic growth, especially in emerging Asia, eastern Europe and South America continued to offer interesting trade opportunities for Europe, though the strong euro risks threatening to undermine EU competitiveness.

By: Mark Watts
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