Frankfurt  - Germany's key chemical industry ruled out Tuesday a rapid rebound in its business, forecasting a 3.5 per cent fall in production this year as the global recession gains momentum.

In particular, the nation's chemical industry association (VCI) said slumping demand from industrial customers had hit what is one of Germany's top export sectors.

The VCI's bleak prediction came in the wake of a dramatic fall in the chemical business in the fourth quarter of 2008 with the industry operating at about 75 per cent of its capacity in the final three months of last year. (dpa)