The American Chemistry Council's (ACC) Year-End 2009 Situation & Outlook report states that overall activity in the $3.7 trillion global business of chemistry likely declined 4.6% in 2009. But the report also states that a recovery is on the way in 2010.
According to ACC economists, production gains have been broad-based with Central and Eastern Europe as the prime exception. The year earlier comparisons are improving in every region and most leading indicators of global industrial production suggest further recovery.
Global business of chemistry output will increase 4.6% in 2010, offsetting the decline in 2009, but still down from the peak 5.4% gain in 2004. As more markets recover, a 5.0% gain in global output is expected in 2011, and a 5.1% gain in 2012. During the next two years, the most rapid growth will occur in the emerging nations of Asia-Pacific, Africa and the Middle East, Emerging Europe, and Latin America. Most notable are China, India, and Brazil, but Korea, Singapore, and Taiwan will also present good growth prospects through 2012. The chemical industries of the emerging nations will increase 6.9% in 2010, and 7.6% in both 2011 and 2012.
In contrast, the chemical industries of the developed nations will average only 3.3% in the 2010-2012 period as there will be headwinds from rising production capabilities in the emerging markets in addition to anemic growth in domestic demand.
Among the developed nations, the $607 billion business of chemistry in the United States will experience some of the strongest growth, aided by a low dollar and natural gas prices.
For more information, visit: www.americanchemistry.com.