In the year 2024, the global economy expanded by 2.7%, slightly more slowly than in the previous year, with all regions recording positive growth rates. The weak growth momentum of the global economy was driven by higher inflation and persistently sluggish growth in North America and China. The EMLA region once again expanded more slowly than the global economy. Weak investing activities and poor demand for exports were the main causes of the continuing slow growth. Growth in the NA region was virtually on a level with global expansion in the year 2024. Inflationary pressure and volatile labor market in the United States had a negative impact on consumption. In the APAC region, weak consumption and the difficult situation in the real estate sector meant that economic growth was down on the previous year, although it was still above global economic growth.
| Economic environment1 | ||
|---|---|---|
| Growth 2023 | Growth 2024 | |
| % | % | |
| World | 2.8 | 2.7 |
| Europe, Middle East, Latin America2, Africa (EMLA) | 1.3 | 1.5 |
| of which Europe | 1.0 | 1.2 |
| of which Germany | –0.1 | –0.2 |
| of which Middle East | 1.2 | 1.7 |
| of which Latin America2 | 2.3 | 2.1 |
| of which Africa | 3.1 | 3.1 |
| North America3 (NA) | 2.8 | 2.6 |
| of which United States | 2.9 | 2.8 |
| Asia-Pacific (APAC) | 4.3 | 3.9 |
| of which China | 5.2 | 4.8 |
1 Real growth of gross domestic product; source: Oxford Economics, as of February 2025.
2 Latin America (excluding Mexico).
3 North America (Canada, Mexico, United States).
The weak but robust global economic growth performance in the year 2024 is not reflected in all of Covestro’s main customer industries.
Growth in the global automotive industry was significantly worse than in the previous year, with negative growth of 0.7% in fiscal 2024. Persistent problems in reducing inventories as well as significantly more sluggish growth in the area of electric vehicles had a negative impact on the sector. The APAC and NA regions recorded slight positive growth, while growth in the NA and EMLA regions was negative.
In the year 2024, the growth rate in the construction industry was negative at 2.5% and therefore similar to the previous year. Falling interest rates have so far failed to halt the decline in residential construction around the world. High levels of uncertainty in the real estate sector continued to have a negative impact in the year 2024, leading to a slight decline in the construction industry in the APAC and EMLA regions. The rate of growth in the NA region, on the other hand, was slightly positive.
In the year 2024, the growth rate achieved in the electrical, electronics, and household appliances industry was 4.1% and therefore significantly up on the previous year. Demand for entertainment electronics and computers as well as general structural change driven by artificial intelligence and industrial automation had a beneficial impact on the industry. All regions recorded positive growth in the reporting year.
In the year 2024, the global furniture industry saw negative growth of 0.5%, although this was significantly better than in the previous year. As in the previous year, high prices and declining residential construction continued to weigh on the industry’s expansion, leading to negative growth in the EMLA and NA regions. The APAC region’s growth was positive, on the other hand.
| Main customer industries1 | ||
|---|---|---|
| Growth 2023 | Growth 2024 | |
| % | % | |
| Automotive | 10.3 | –0.7 |
| Construction | –2.1 | –2.5 |
| Electrical, electronics and household appliances | –1.8 | 4.1 |
| Furniture | –4.7 | –0.5 |
1 Covestro’s estimate, based on the following sources: GlobalData Plc, B+L, CSIL (Centre for Industrial Studies), Oxford Economics. We limited the economic data of our “automotive and transportation” and “furniture and wood processing” main customer industries to the automotive and furniture segments (excluding the transportation or wood processing segments). As of: February 2025.