BERLIN, July 3 (Reuters) - Germany’s VCI chemical association on Wednesday cut its forecast for 2019 revenues to a decline of 3% from a previous forecast of 2.5%, citing slower economic growth, weakening industrial activity and market uncertainty due to trade conflicts.
The association, representing chemical and pharmaceutical firms with operations in Germany, predicted a 1% drop in domestic sales this year and a 4.5% decline in foreign sales.
“On the one hand there is a risk of a spiral of rising tariffs between the U.S. and China and on the other hand the risk of military conflicts in the Middle East is increasing,” VCI President Hans Van Bylen said.
“If it comes to that, it would slow global growth further - with a significant impact on German industry,” he added.
Production in the chemical and pharmaceutical industries, which are important contributors to Germany’s gross domestic product, fell by 6.5% in the first half of 2019 year-on-year, VCI said.
Reporting by Riham Alkousaa Editing by Michelle Martin