EU chems output to slow in 2008 - Cefic

01 July 2008 09:07  [Source: ICIS news]

LONDON (ICIS news)--Cefic expects chemical industry output in Europe to slow in 2008 but to show a slight improvement next year, the industry council said on Tuesday.

Output in the chemical industry, excluding pharmaceuticals, was expected to grow by 1.4% this year compared with 2.1% in 2007, it said, adding growth in 2009 was expected to be 1.5%.

The economic prospects for Europe and the world had been affected by the financial crisis in the US, higher energy costs, and, for the eurozone, the appreciation of the euro against the dollar, Cefic said.

It added that these developments were already starting to affect European business.

The EU chemicals industry, excluding pharmaceuticals, experienced modest growth in the first quarter of 2008, with a production index of 0.5% above the previous year.

“Looking ahead, Cefic expects an output growth of 2.0% in 2008 for the EU chemical industry as a whole [including pharmaceuticals], down from 2.5% in 2007,” the industry council said.

“Most chemical sub-sectors will not show better growth in 2008 compared to 2007,” it added.

“For 2009, growth prospects are slightly better, with the exception of polymers. This sector is experiencing increasing import pressure and it is also affected by lower demand from main downstream users in Europe such as construction, automotive and packaging,” Cefic said. 

World gross domestic product (GDP) is expected to grow by 2.7% this year and by 3.1% next year, Cefic said, adding EU GDP was expected to grow by 1.9% in both 2008 and 2009.

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By: Hilde Ovrebekk
+44 20 8652 3214

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