Germany's Chemical Industry Faces Mixed Outlook for 2024-2025

Germany's Chemical Industry Association (VCI) reveals a mixed forecast for 2024 and 2025. While production may rise slightly and pharmaceuticals are expected to see minimal growth, sales and prices are anticipated to decline. COVID-19's effects linger with a potential drop in employment numbers.

The German Chemical Industry Association, VCI, reveals a nuanced outlook for 2024. Production in the industry is set to increase by 2% year-on-year, or 4% excluding pharmaceuticals. However, the total sales figures are anticipated to drop by 2% to EUR 221 billion, with producer prices also falling by 2.5%.

For the coming year, a modest production growth of 0.5% is expected, with pharmaceuticals seeing the same slight increase while the broader chemical sector remains stagnant into 2025. Industry prices could see a minor dip of about 0.5%, with sales predicted to weaken due to rising producer prices and low order backlogs.

The VCI forecasts a potential decline in employment numbers. Despite the challenges, a bright spot remains as certain sectors, like pharmaceuticals, are expected to maintain some growth amid the economic pressures facing the industry.

(With inputs from agencies.)