Optimism is being
undermined by
worries about the
economic impact
of the Ukranian
crisis, particularly
on coatings
demand in
Russia and other
Eastern European
countries.
by Sean Milmo
European Correspondent
milmocw@rodmanmedia.com
European coatings companies have been hoping that this year would bring a re- vival in their domestic markets as the
European Union economies, particularly those
in the eurozone, started to show signs of recovery around mid-2013.
But the optimism is being undermined by
worries about the economic impact of the
Ukrainian crisis, particularly on coatings demand in Russia and other Eastern European
countries where coatings have been growing
strongly over the last few years.
Many Western European coatings producers
have been relying on exports to these emerging
markets on their door steps to offset static or
even declining domestic sales.
They have also been slightly concerned
about the short-term prospects in China and
elsewhere in Asia which have become another expanding destination for European
coatings exports.
However, in Western Europe itself the outlook has brightened considerably—at least
before the recent events in Ukraine. After
two years of decline, the GDP of the 18-na-
tional eurozone was expected by the European
Commission, the EU’s Brussels-based executive,
to grow by 1.2 percent this year.
Within the whole Union of 28 countries
GDP was being forecast to expand by 1.5 percent which in 2015 would rise to 2 percent
with some countries then possibly showing
growth rates of over 3 percent.
Chemicals output, including that of coatings, will go up by an average 1.5 percent
this year after being flat in 2013, according
to the European Chemical Industry Council
Recovery in Europe Could
Be Stalled by Ukrainian Crisis
