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Outlook 2023

Q1 2023

The development of the global economy is still subject to great uncertainty. Momentum in global industrial and chemical production remained subdued.

The assumptions regarding the global economic environment from the BASF Report 2022 remain unchanged:

  • Growth in gross domestic product: 1.6%
  • Growth in industrial production: 1.8%
  • Growth in chemical production: 2.0%
  • Average euro/dollar exchange rate of $1.05 per euro
  • Average annual oil price (Brent crude) of $90 per barrel

The sales, earnings, ROCE, and CO2 forecasts as presented in the BASF Report 2022 continue to apply:

  • Sales of between €84 billion and €87 billion
  • EBIT before special items of between €4.8 billion and €5.4 billion
  • Return on capital employed (ROCE) of between 7.2% and 8.0%
  • CO2 emissions of between 18.1 million metric tons and 19.1 million metric tons

Forecast risks in terms of volume growth and margins for 2023 have partially materialized and led to a considerable decline in earnings in the first quarter of 2023, compared with the prior-year quarter. Opportunities that arose, particularly in the Agricultural Solutions segment due to higher prices, supported earnings. Market-related opportunities and risks continue to exist.

Likewise for the remaining opportunity and risk factors, the statements made in the BASF Report 2022 mainly continue to apply. According to the company’s assessment, neither existing individual risks nor the sum of individual risks pose a threat to the continued existence of the BASF Group.

Report 2022

The high level of uncertainty that arose over the course of 2022 due to the war in Ukraine, high raw materials and energy costs in Europe, rising prices and interest rates, inflation and the development of the coronavirus pandemic will continue in 2023. All of these factors will negatively impact global demand, which is why we only expect moderate growth for the global economy in 2023.

Outlook for 2023 at a glance


of between €84 billion and €87 billion


EBIT before special items

of between €4.8 billion and €5.4 billion


of between 7.2% and 8.0%


CO2 emissions

of between 18.1 million metric tons and 19.1 million metric tons



of around €6.3 billion

We anticipate moderate growth in the majority of our customer industries and expect the slight recovery in the automotive industry in particular to continue. Our forecast assumes that the war in Ukraine will continue but not escalate further, although the further development of the war in Ukraine and its effects on economic growth are still subject to a high degree of uncertainty. In addition, we are assuming that an acute gas shortage with regulatory cuts in natural gas supply to energy-intensive industries in Europe will not materialize. We expect China’s departure from its zero-COVID strategy to have a positive impact on the development of demand.

The global economy is expected to grow by only 1.6% in 2023 (2022: 3.0%). We expect growth of 1.8% for global industrial production (2022: 2.5%), while global chemical production is likely to expand by 2.0% in 2023 (2022: 2.2%). Our planning assumes an average oil price of $90 for a barrel of Brent crude and an exchange rate of $1.05 per euro. We anticipate elevated and very volatile gas prices in Europe.

Sales, earnings and ROCE forecast for the BASF Group1

The BASF Group is expected to generate sales of between €84 billion and €87 billion in 2023. Planned volume growth in all segments will contribute here. We anticipate slight sales growth in the Agricultural Solutions and Materials segments, mainly driven by higher prices and volumes in both segments. Sales in Other should be slightly higher. We are forecasting sales at prior-year level in the Nutrition & Care segment. We anticipate lower price levels, especially for basic chemicals and precious metals, which will lead to a slight sales decrease in the Chemicals and Surface Technologies segments. The Industrial Solutions segment is also expected to see slightly lower sales due to the sale of the kaolin minerals business.

The BASF Group’s EBIT before special items is expected to decline to between €4.8 billion and €5.4 billion. Our planning for the Agricultural Solutions segment assumes a slight increase in EBIT before special items. In the Nutrition & Care, Surface Technologies and Industrial Solutions segments, we expect slightly lower EBIT before special items. We anticipate significantly lower contributions from the Chemicals and Materials segments and from Other. We expect a weak first half of 2023 followed by an improved earnings environment in the second half of the year due to recovery effects, especially in China.

Based on the weaker earnings performance and slightly higher cost of capital basis forecast for the BASF Group in 2023, we expect a ROCE of between 7.2% and 8.0%. ROCE should increase slightly in the Agricultural Solutions segment. In the Industrial Solutions and Surface Technologies segments, ROCE is likely to decline slightly. Compared with the previous year, we anticipate a considerable decrease in ROCE in the Chemicals, Materials and Nutrition & Care segments.


1 For sales, “slight” represents a change of 0.1%–5.0%, while “considerable” applies to changes of 5.1% and higher. “At prior-year level” indicates no change (+/–0.0%). For earnings, “slight” means a change of 0.1%–10.0%, while “considerable” is used for changes of 10.1% and higher. “At prior-year level” indicates no change (+/–0.0%). For ROCE, we define a change of 0.1 to 1.0 percentage points as “slight,” a change of more than 1.0 percentage points as “considerable” and no change (+/–0.0 percentage points) as “at prior-year level.”

CO2 emissions forecast for the BASF Group

CO2 emissions are expected to be between 18.1 million metric tons and 19.1 million metric tons in 2023. We anticipate additional emissions from moderate growth in production and slightly higher capacity utilization at emissions-intensive plants. For example, the ammonia plants in Europe will probably see higher capacity utilization compared with 2022 but will continue to run at low levels due to sustained high gas prices. We will counteract this increase with targeted measures to reduce emissions, further increase energy efficiency and optimize processes and, above all, continue the shift to electricity from renewable energies.


The material opportunities and risks that could affect our forecast are described in the BASF Report 2022.


This page contains forward-looking statements. These statements are based on current estimates and projections of the Board of Executive Directors and currently available information. Forward-looking statements are not guarantees of the future developments and results outlined therein. These are dependent on a number of factors; they involve various risks and uncertainties; and they are based on assumptions that may not prove to be accurate. Such risk factors include those discussed in Opportunities and Risks of the BASF Report 2022. BASF does not assume any obligation to update the forward-looking statements contained in this outlook above and beyond the legal requirements.

Last Update April 27, 2023