Management Report
2. Economic Outlook
The global economy should continue to recover over the course of the year. However, we expect overall growth to be somewhat restrained, with the effects of the economic crisis continuing to hamper development. Only in the emerging markets is the economic recovery likely to proceed at a steady, rapid pace. Asia will probably remain the most dynamic region, while growth isexpected to be rather moderate in the United States and comparatively weak in Europe.
We expect growth in the pharmaceutical market in 2010 to be in the mid-single digits. This expansion is likely to be driven increasingly by emerging countries. However, we anticipate low-single-digit growth rates in the traditional markets such as the United States and the major European countries due to patent expirations for major products of various pharmaceutical companies, a decline in new product introductions and the increasing cost pressure from health organizations. We expect a positive overall trend this year in the consumer health markets, with wide regional variations in market growth.
We foresee modest growth in the seed and crop protection market in 2010 following a decline last year.
Following strongly negative market reactions last year, the main customer industries of MaterialScience (automotive, electrical/electronics, construction, furniture) are likely to experience a steady recovery in 2010 that will probably vary by region.