The German Chemical Industry Association (VCI) said: "The German chemical and pharmaceutical industry ended 2024 with a serious setback, and the hopes for a recovery of the German and European industrial economy have not been realized."
In terms of sales, compared with the fourth quarter of 2023, the German chemical and pharmaceutical industry fell by 1.5%, but increased by 0.3% month-on-month to 53.1 billion euros. Prices of chemical and pharmaceutical products stagnated, down 0.2% year-on-year.
VCI will pin its hopes on the new German federal government, expecting bold reforms to get Germany back on the road to competitiveness.
"Trump's unpredictable tariff policy, the re-increase in energy prices and unresolved structural problems will continue to bring uncertainty to the development of the chemical industry." VCI Director General Wolfgang Gross Entrop warned that Germany needs to completely change its economic policy, "'Economy first' must become the motto."
Currently, supported by the growth of the pharmaceutical industry, the German chemical and pharmaceutical industry's workforce remains at around 480,000. However, the pressure in the chemical industry remains high, and the number of employees has begun to decline slightly.
VCI predicts that German chemical and pharmaceutical production will continue to stagnate in fiscal 2025, with industry sales falling by 1%. An economic turnaround in the industry is not expected until 2026 at the earliest.
