Slowdown expected for 2008

Cefic, the European Chemical Industry Council, expects output in the chemical industry (excluding pharmaceuticals) to grow by 2.6% in 2007, compared to 2.1% in 2006. 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. The year 2008 may show a slowdown and the business of chemistry may reach a growth rate of 1.9%. Looking ahead, Cefic expects an output growth of 2.3% 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.kem