Chemical trade deficit will continue in 2009
By Purchasing Staff -- Purchasing, 1/15/2009 2:00:00 AM
During the first part of 2008, sales of chemicals were growing briskly, in part due to higher energy costs, reports Kevin Swift, chief economist of the American Chemistry Council. Global demand for chemicals was strong and the U.S. was on track to post a trade surplus in chemicals for the first time since 2001. But, in September, credit markets froze and global demand decelerated. As a result, worldwide trade slowed considerably for chemicals and other goods. By the end of 2008, exports were up 15.1% to $177.1 billion from 2007 and imports rose 14.4% to $177.4. "The trade deficit in chemical products is expected to fall to $300 million, its best position in six years, but a deficit nonetheless," says Swift in a report. "During 2009, as the global economy struggles through the worst recession in several decades, trade in chemicals is expected to fall." He projects that exports will fall 4.8% to $168.6 before growing 5.4% to $177.7 billion in 2010 when the global economy recovers. Imports are expected to fall 2.4% to $173.1 billion in 2009 before growing by 4% to $180.0 billion in 2010. The chemicals trade deficit will grow in 2009 to $4.5 billion before improving to $2.3 billion in 2010.
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