Brussel, 7 December 2017 – Cefic, the European Chemical Industry Council, is expecting a solid 3% growth of chemical output in the EU in 2017, driven by a growing demand from customer industries. A slight deceleration to around 2% is forecast for 2018.Responsible for 1.1% of the EU’s GDP and employing 1.2 million people, the EU chemical industry supplies virtually all sectors of the economy and is the third largest investor in EU manufacturing industries.The recovery of the chemical sector follows the overall economic growth in the EU in the first three quarters of 2017, driven by a robust consumer demand as well as investments in new production capacities.  The growth of the EU manufacturing production, primarily in the automotive, construction, metal production and electronics sector, has led to an increased domestic demand for chemicals.  Furthermore, the exports of the EU-produced chemicals to, among others, Asia and Russia have increased.Marco Mensink, Cefic Director General: The momentum is growing for the EU chemical industry to achieve its maximum production volumes. This will not only help economic growth but will also drive innovation as the solutions provided by the chemical industry help develop cutting-edge technologies and processes in nearly all sectors of the EU economy from consumer electronics to medicines. The chemical industry’s contribution is also key in shaping the transition to a resource efficient, low-carbon and circular economy.”Although the 2018 industry outlook looks rather positive, the chemical industry remains at risk of investment leakage due to high energy and feedstock prices as well as carbon costs under the EU Emission Trading System (EU ETS).The EU chemical industry is facing fierce competition from China and NAFTA countries who currently dominate the global chemicals market. To this end, Cefic will continue working with the European Commission and Member States to further develop the Renewed EU Industrial Policy Strategy in order to improve the EU’s competitiveness vis-à-vis other regions, attract more investments into the sector and create more jobs.