German chemical exports decline

Verband der Chemischen Industrie (VCI), Germany’s main chemical industry association, says its members experienced a noticeable drop in export sales in the first 6 months of the year. The group blames high German production costs and weak industrial demand in China, Europe, and the US. Sales fell by 3.7% to European Union countries and 3.9% to North America. Germany’s chemical sector has been relying on foreign sales to buoy its financial performance following a sustained period of weak domestic demand. “In addition to the disappointing domestic business, there is now also a headwind in the export business,” Henrik Meincke, VCI’s chief economist, says in a press release. “The hoped-for recovery is in danger of running out of steam.” In contrast to the situation for chemicals, German pharmaceutical exports increased during the period in the key markets of Asia and the US, with sales to North America growing by over 13%,