FRANKFURT, Oct 27 (Reuters) - BASF is bracing for persistent low growth rates in China, where the economy has to rely on higher consumption as investment rates are in decline for the long term, the German chemical group’s chief executive said.
“Our assumption is for growth rates in China to remain lower in the future. The growth that we are seeing in our markets is not the growth that you can find in the GDP numbers,” CEO Kurt Bock told journalists in a conference call on Tuesday.
“We basically achieved no real growth in China in Q3.”
The world’s largest chemicals company by sales earlier cut its full-year earnings guidance on weak demand and plunging local currencies in China, Brazil and other emerging markets.
China’s economic growth dipped below 7 percent in the third quarter, hurt by cooling investment and following a stock market plunge and a devaluation of the yuan.
CEO Bock said that while demand from the Chinese automotive industry developed relatively well in the third quarter, most other markets such as construction and household products were weak. (Reporting by Ludwig Burger; Editing by Georgina Prodhan)