The pace of deindustrialization in Germany is dramatic. The German Chemical Industry Association (VCI) expects sales to drop by 14% and by 16% in chemicals alone this year. The VCI, which presented its forecast on July 21, had previously expected a 5% decline in production and a 7% drop in sales.
“The house is burning,” VCI vice president Markus Steilemann said in a press conference in Frankfurt.
The gloomy picture is due to a fall in orders, especially from the automotive, consumer goods and construction sectors. In the first half of the year, production in the chemical and pharmaceutical sectors fell by 10.5% compared to the previous year. Sales fell by 11.5% to €114 billion due to weak demand.
The automotive branch, forced to drop endothermic engines and shift to e-car only, is emigrating because of the high costs. The news of the day is that Audi will move its e-car production to China, in a joint venture with SAIC.
