Europe. According to the "Eurozone Economic Outlook, ifo Institute (July 3, 2018)", in quarter 2 and 3 of 2018, the Eurozone economy is expected to grow at the same rate as in quarter 1 of 2018 (+0.4%), before slightly accelerating to +0.5% in the fourth quarter of 2018. The main driver behind this expansion in economic activity will be gross fixed capital formation, still driven by favourable financing conditions.
However, the risks have increased. Domestic political tensions and the spread of protectionist measures globally could hamper a prolonged expansion.
Chemicals up 1.1% (January-May-18)
Production in the EU chemical sector grew by 1.1% from January to May 2018 compared to the same period in 2017, with production increasing in some key chemical subsectors, such as cosmetics, paints and coatings, and synthetic fibres (over 2.3%, yoy). Specialties recorded less significant output growth (1.4%, y-o-y). However, basic inorganics reported negative growth of 6.3% over the same period.
Chemical prices up 2.3% (January-May-18)
Producer prices were above the previous year's level, growing by 2.3% in the EU chemical sector from January to May 2018 (year-to-year). Basic inorganics, dyes and pigments recorded significant and positive price growth compared to the other sectors (more than 4.8%, y-o-y).
Chemical exports up 3.4% (January-April-18)
EU chemical exports reached the value of €54 billion through April 2018, up from 52.2% in the same period last year. The US was by far the LARGEST export market for chemicals in the EU.
EU chemical exports to the US reached the value of €11.4 billion from January to April 2018, up from €10 billion from January to April 2017. Almost half of these exports were due to petrochemicals. The United States contributed 21.1% of total non-EU chemical exports, followed by the rest of Europe (excluding Russia, 19.2%). The analysis shows that EU chemical exports to the following countries declined: Japan, South Korea, the Middle East and China.
Chemical imports increased by 4.2% (January-April-18)
Eu chemical imports reached the value of 37.7 billion barrels as of April 2018. The UNITED States was by far the largest importing market for chemicals in the EU. Imports of EU chemicals from the US reached the value of €7.7 billion from January to April 2018, up from €8.2 billion in the same period last year.
More than a third of these imports were attributable to specialties (35%). The United States accounted for 20.3% of total imports of non-EU chemicals, followed by the rest of Europe (excluding Russia, 17.2%). In addition to basic inorganic products and consumer chemicals, all chemical sectors recorded an increase in imports. Finally, imports of EU chemicals from Africa, Russia, the Middle East and the United States decreased.
Trade surplus of €800 million (January-April-18)
The net trade surplus was €16.4 billion during the first four months of 2018 (an additional €253 million), the EU's largest surplus of chemicals with the rest of Europe. However, EU chemicals recorded a trade deficit with Japan, China, South Korea and India.
Direct employment increases by 1.7% (Q1-2018)
Employment in the chemicals sector was above the previous year's level, growing by 1.7% in the EU chemical sector from January to March 2018 (yo-y).
