German chemicals lobby VCI trimmed its already grim forecast for the year on Friday, as high energy prices and structural problems for Germany as a business location hamper the industry.

The lump risk of "high energy prices and corporate taxes, worsening infrastructure, shortage of skilled workers, lacklustre digitalisation, and bureaucracy madness robs our entrepreneurs of confidence," said VCI president Markus Steilemann, who is also chief executive at Covestro.

The association, which represents around 1,900 companies in Germany's third-largest industrial sector, now expects industrial production including pharmaceuticals for 2023 to fall by 8%, down from a previously expected decline of 5%.

Sales are forecast to decline by 14% - twice as much as the previous forecast.

For the year's first half, VCI recorded a 10.5% fall in industrial production including pharmaceuticals and a 11.5% decline in sales, while producer prices added 5%.

Throughout the last two months, a string of chemical companies in Germany, where energy prices are among the highest in Europe, including the industry leader BASF, have trimmed their forecasts.

(Reporting by Andrey Sychev, Editing by Rachel More)