Germany’s chemical association lifts 2021 forecast, points to stronger recovery | Reuters

German chemical industry association VCI on Wednesday raised its chemical production outlook for the year, boosted by strong sales and demand from Asia in the first quarter, suggesting a faster than expected recovery for the industry.

Production in the chemical and pharmaceutical industries, which are important contributors to Germany’s gross domestic product, is expected to grow by 4.5% in 2021, up from previous forecast of 3% VCI made in March.

It sees revenue rising 8% to around 206 billion euros ($251 billion), and producer prices jumping 3.5% in the year.

The sector posted a 0.8% rise in first-quarter output from a year earlier. Revenue and prices also increased, rising 1.1% and as 0.3% respectively.

“The first few months give hope for a good year ... demand for chemicals and pharmaceuticals is increasing,” VCI head Christian Kullmann said in a statement.

Kullmann warned about raw material bottlenecks slowing the recovery, saying they were impacting every company in Germany but he expected the situation to ease in the course of the year. ($1 = 0.8210 euros) (Reporting by Riham Alkousaa Editing by Madeline Chambers)

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