Published on September 27, 2014

Chemical production is often taken as the best possible means to measure the wider economy. Growth has slowed down in the second quarter; operating rates have also declined in this period. Global growth hit 5 per cent in April but has since fallen to 3.3 per cent.

North America witnessed an improved performance in August, however the revitalised industry, rising production and strong recovery has been constrained by sluggish global growth.

Latin America has had a sharp fall, from 1.2 per cent growth March to a fall of 3.9 per cent in August. Western Europe has fallen from a growth of 4per cent in May to 2.9 per cent in August, while Central/Eastern Europe has tumbled from 2.4 per cent growth in February to a fall of3 per cent in August.

Middle East/Africa has fallen from growth of 8.4 per cent in February to 6.7 per cent in August. Asia also witnessed a sharp fall from 8.3 per cent growth in March to 5.6 per cent in August.

Certain countries have had steep declines. For instance, Germany has fallen from 4.8 per cent growth in February to 3.5 per cent in August. India also declined from 12.9 per cent growth in January to 3.4 per cent in August. Japan crashed from 9.2 per cent growth in March to 0.8 per cent in August. Mexico has moved from 1 per cent growth in April to a fall of 2.8 per cent in August. Russia has gone from a growth of 4.2 per cent in January to 10.4 per cent fall in August.

China is the only nation that has held ground and has registered a relatively strong growth level. In April, China reported a growth rate of 11.1 per cent in and saw 8.8 per cent growth in August. China managed to achieve this because of its decision to shift from being an importer to an exporter. China is quickly becoming a major exporter of key petrochemicals.