Cefic predicts ‘modest’ growth for EU chemicals despite global challenges
17 Jul 2018
Cefic, the European Chemical Industry Council, has predicted modest production growth of 1.5% for the sector’s European Union members for this year and the next.
Polymers, specialties, and consumer chemicals will be the sub sectors contributing mostly to the increase. However, the council predicts that, while growth will parallel that for 2017, it will be more volatile.
The manufacturing output of the customer industries of the EU chemical sector has slowed down compared to 2017, said Cefic. European manufacturing output is forecast to grow less than last year, by 2.5% in 2018, down from the solid growth of 3.5% reached in 2017.
Despite a general slowdown across all industries, EU manufacturing output is expected to grow by 1.5% in 2019.
Said a spokesperson: “The sector’s growth and international competitiveness are also likely to be impacted by increasing protectionist trade policies – which may dampen demand for EU goods – and increasing oil prices.
“Because of its internationally integrated value chains and strong export orientation, the chemical industry remains a fervent supporter of free trade.”
In what may be seen as a reference to the UK’s post-Brexit ambitions, Cefic reiterated that it strongly supports the ambition shown by the EU and member states following a series of new free trade agreements with regions and countries from across the world.