BASF Alters Outlook Until on Market from 2015 to 2020

Ludwigshafen, DE, September 28, 2015—BASF expects chemical production to continue to grow well above global GDP until 2020; however, the company has altered its outlook on the market. 

The business environment has changed since BASF introduced its “We create chemistry” strategy in 2011. “Major markets did not grow as fast as anticipated. The oil price has been unpredictable and has decreased substantially. Geopolitics have contributed to higher volatility,” said Dr. Kurt Bock, chairman of the board of executive directors of BASF SE.

As a result, BASF has slightly adjusted its expectations for the global economic environment from 2015 to 2020 (compound annual growth rates; assumptions from 2011 in parentheses): growth of gross domestic product: 3.0% (3.2%); growth in industrial production: 3.5% (3.7%); growth in chemical production: 3.9% (4.0).

The development varies by region. The emerging markets will remain the global growth drivers; Asia Pacific is already the largest chemical market today. BASF projects that Western Europe will get back on the growth path, but on a low level. Competitive feedstock costs and an expanding economy will drive the growth of chemical production in North America.