German Chemical Industry Faces Grim Outlook, Warns VCI CEO
The German chemical industry faces a grim outlook, warns VCI CEO Wolfgang Große Entrup. He cautions that 'Germany, the industrial nation, is listing heavily', risking the decline of key sectors without swift political action.
Orders in the chemical industry have plummeted by 10 percent, with production now 7 percent lower than last year. The mood remains pessimistic, and no signs of recovery are in sight. Weak demand is pushing down producer prices, which have fallen again.
The industry does not anticipate an economic turnaround until next year. Companies have been dissatisfied with the situation for three years, showing a consistent downward trend. The sector's weak competitive position on foreign markets, exacerbated by higher tariffs, is another challenge. Many customer industries reducing their production further impacts domestic sales of chemicals.
The Verband der Chemischen Industrie (VCI) demands concrete measures to tackle the economic downturn. These include reducing electricity costs, cutting bureaucracy, and eliminating irrational regulations in the chemical sector. The industry urgently needs economic signals from Berlin and Brussels to boost the economy and overcome the current slump.
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