CEFIC European Chemical Industry Council : Economic Outlook 2016 | European chemical industry forecast 1% growth for 2016

Below is a statement by Cefic on the WTO ruling on Chinese rare earths and other raw materials restrictions PRESS RELEASE

16 December 2015

European chemical industry forecasts 1% growth for 2016

Cefic calls on policymakers to support conditions for long term growth

Brussels, 16 December 2015 - The European chemical industry is forecasting modest growth in domestic and worldwide demand for European chemicals for 2016, with challenging times ahead in the long-term. This forecast comes in the face of declining demand from key industries, competition from third countries and economic slowdown in important export markets.

Overall, Cefic expects around 1% growth in EU chemical production in 2016, following the similarly sluggish rates of 0.5% in 2015. The environment for the chemical business in 2015 proved challenging: manufacturing growth in the European Union grew only moderately, while construction growth was slower than expected in the current low-interest rate environment. Only the automotive industry over- performed in 2015, impacting demand for certain chemical products. Looking ahead, growth in industries such as food and beverages, and construction are expected to offset relatively any downturn in the automotive sector.

Hubert Mandery, Cefic Director General, said that, "Although we are forecasting a slight uptick compared to the previous year, the conditions under which this modest growth took place - such as low oil prices and a favourable Euro/USD exchange rate - cannot be expected to last indefinitely".

He emphasised the need for EU policymakers to support the competitiveness and innovative capacity of the European chemical industry.

Click here to read Cefic's Factsheet: Outlook on EU Chemical Production

For more information please contact:

Dervla Gleeson, Media Relations Manager, Cefic,

+32 2.676.72.89 or [e-mail].

About Cefic

Cefic, the European Chemical Industry Council, founded in 1972, is the voice of 29,000 large, medium and small chemical companies in Europe, which provide 1.2 million jobs and account for 17% of world chemicals production. More information can be found on www.cefic.org