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The Asian chemical industry under pressure in 2009 2009-02-13 China Chemical Information Network http://www.cheminfo.gov.cn/Images/ad/njsi*n03174.GIF The impact of the global financial crisis is affecting emerging markets, including those in the Asia-Pacific region. 2009 was likely a challenging year for chemical manufacturers in the Asia-Pacific region. The Asian Development Bank (ADB) has once again lowered its forecasts for the GDP growth rates of emerging East Asian economies (ASEAN**, China, South Korea, and Taiwan) in 2009, marking the second reduction in just over 3 months. According to the ADB, the GDP growth rate for this region is expected to be 5.7% in 2009, compared to 6.9% in 2008 and 9% in 2007. Affected by weak exports and a sharp decline in private capital flows, Asian developing economies will face severe challenges in 2009. Jong-Wha Lee, head of the ADB Office for Regional Economic Integration, believes that this year is a difficult one for developing Asian economies. But if the countermeasures are appropriate, this difficulty can be overcome. According to ADB forecasts, the economic growth rates of certain countries in Southeast Asia are set to decline significantly in 2009: Thailand’s GDP growth rate will drop by half to 2%, Indonesia’s GDP growth rate will fall from 6.1% to 5%, while Malaysia’s growth rate will decrease from 5% to 3.5%. The GDP growth rates of the emerging industrialized economies will also decline significantly; South Korea’s economic growth rate will slow from 4.2% last year to 3%, while Taiwan’s economic growth rate will drop from 2.4% to 1.7%. The growing financial crisis is putting immense pressure on Asia’s chemical industry. Most chemical manufacturers have reduced production or temporarily shut down their plants in response to the decline in market demand. According to the American Chemistry Council (ACC), the growth rate of chemical production in the Asia-Pacific region (excluding Japan) in 2009 is expected to decline from 8.4% in 2008 to 6.3%. South Korea, which experienced the largest decline in growth rate, saw its chemical production growth rate drop by more than half in 2009, to 3.1%. In Taiwan, China, the growth rate of chemical production is also set to decline from 6.1% last year to 3.5%. The growth rate of chemical production in Singapore will drop from 2.5% to 2.3%.