German chemicals industry sees slower growth next year

7th December 2011, Comments 0 comments

Germany's chemicals companies, after a strong year this year, are expecting slower growth in 2012, but the sector will not face a crisis, the VCI industry federation predicted Wednesday.

"With record sales, output reaching pre-crisis levels, rising research spending and increased employment, 2011 was in many ways a good year for the German chemical sector," VCI said in a statement.

"But for 2012, the industry is expected a sharp slowdown in the pace of growth," it said.

Output, which is calculated to have grown by 4.0 percent in 2011, was set to increase by 1.0 percent next year.

And after rising 9.0 percent to 186.5 billion euros ($250 billion) this year, sales were expected to grow by 2.0 percent.

"It's difficult to make an accurate forecast for the coming 12 months. The outlook has clouded over," said VCI president Klaus Engel.

With no end in sight to the debt crises in Europe and the United States, consumers and companies are becoming increasingly nervous.

"But there can be no talk of a crisis in the industry," Engel insisted.

"Things are still pointing upwards for the chemicals industry in 2012, albeit at a slower pace than this year," he said.

© 2011 AFP

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