Chemicals saw good growth in EU in 2006, moderate slowdown forecast for 2007

22-Nov-06

2006 has been favourable for the European chemical industry, with output in the chemical industry (excluding pharmaceuticals) estimated to grow by 2.5% in 2006, compared to 1.5% in 2005, as per Cefic, the European Chemical Industry Council. This indicates a rate more than the average growth rate over the last five years. Growth for 2007 has been forecast to slow down modestly to 2.2%. Basic inorganics, polymers and petrochemicals have continued to grow in 2006. Fine and specialty chemicals are expected to grow by 2.8% in 2006 after a drop of 1.2% last year, benefiting from stronger industrial demand, specially from the construction sector. Healthy consumption in the household sector has driven up consumer chemicals activity by nearly 4% in 2006. During 2006, chemicals business has improved driven mainly by strong domestic demand and the dynamic growth of trade activities with major EU trade partners. Domestic sales has been mainly driven by favourable business climate in most customer industries, and are expected to grow by 4.6% in 2006. This is leading to stronger domestic demand for chemicals in the EU. The trade development with the major EU trade partners has resulted in exports growing higher than imports, resulting in an encouraging trade surplus.