The turbulences in the world economy are affecting the European business of chemistry. The financial crisis in the USA, the higher energy costs, and the stronger appreciation of the Euro against the US$ are generating negative effects on production growth of the EU chemicals industry. Data shows that output in the EU chemicals industry (excluding pharmaceuticals) has started to decline since March 2008, and output declined further in April 2008 by 1.3% compared to April of 2007. All chemicals sectors experienced relatively the same negative trend in April where output declined in the range of 1.0 to 1.9%. Pharmaceuticals are the only exception where output grew positively.

Taking into account the first fourth months of 2008, output in the EU chemicals industry (excluding pharmaceuticals) experienced no change compared to the same period of 2007. However, the results show encouraging growth in production for pharmaceuticals (3.9%).

Petrochemicals and Polymers registered a very weak growth (less than 1%). Basic inorganics grew by 1.2% while specialty chemicals and consumer chemicals showed a clear decline. Chemicals including pharmaceuticals grew over the first four months of 2008 by 1.4% compared to the same period of 2007, which is too low compared to its long-run average (Data source: Eurostat). (Refer the slides below for more details)