Overview
- Germany’s chemical and pharmaceutical industries rebounded in Q1 2025, with revenues rising 4.4% to €54.8 billion and production increasing by 6.7%.
- Pharmaceutical production surged over 10%, attributed to pre-emptive orders amid fears of potential US tariffs on medications.
- The Verband der Chemischen Industrie (VCI) highlighted improved business conditions but maintained a cautious outlook for 2025, predicting stagnant production and a slight 1% revenue decline.
- High domestic energy costs and restructuring by major firms like BASF and Evonik continue to weigh on the sector’s long-term competitiveness.
- The industry is urging the German government to implement structural reforms, including lower energy costs, reduced bureaucracy, and tax changes, to sustain recovery efforts.