FILE PHOTO: A general view of the BASF chemical industry company in Schwarzheide, Germany, November 1, 2022. REUTERS/Lisi Niesner/Pool
BERLIN (Reuters) – German industrial production is on track to rise slightly this year thanks to order backlogs but the outlook for 2023 is gloomy as high energy prices and geopolitical uncertainties hurt businesses, the BDI industry association said on Tuesday.
The BDI said it expected a slight increase in production of around 0.25% this year, after 4.7% in 2021.
“The outlook for 2023 is gloomy. More and more companies in the manufacturing sector are exposed to high energy prices and geopolitical uncertainties,” the association added in a statement.
From January to September this year, energy-intensive sectors cut production, which fell by 2.3% at metal-producing and metal-processing companies, by 3.7% at manufacturers of rubber and plastic goods and by 8.2% in the chemical industry, the BDI said.