German Chemical Industry in Crisis: Production Down, Orders Fall as Tariffs Bite
The German chemical industry, a vital sector for Europe's largest economy, is struggling with a weak competitive position and high tariffs. Production is down by nearly 7% compared to last year, orders have fallen by 10%, and demand remains weak. The industry is calling for urgent action from Berlin and Brussels to boost the economy and encourage investment.
VCI CEO Wolfgang Große Entrup warns that 'Germany, the industrial nation, is listing heavily', risking the demise of key industries. He demands a clear reduction in electricity costs, bureaucracy, and irrational regulation from Brussels. The industry is suffering from its weak competitive position on international markets, with higher tariffs exacerbating the situation.
The chemical industry does not expect an economic recovery until next year, with no sign of a political shift. Companies have been dissatisfied with the current situation for three years, with expectations now falling again. Despite this, the European Union has been implementing strategies for sustainable and circular economies, which may indirectly impact the chemical sector through broader environmental and economic policies.
The German chemical industry is in crisis, with fading hopes for an economic and political turnaround. It urgently needs economic signals from Berlin and Brussels to boost the economy and encourage investment. Production is down, orders have fallen, and demand remains weak, putting pressure on producer prices. The industry's weak competitive position on international markets, exacerbated by higher tariffs, is a pressing concern that requires immediate attention.
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