In the industrially developed countries, the growth rate of the gross national product in 1977 was lower than it had been expected. This is a consequence of a careful restrictive monetary fiscal policy in many countries. The highest rate of growth has been recorded in the South European countries, with the exception of Spain, and in the USA. The rate of growth of the gross national product has been significantly lowered in the USSR and the countries of the East Europe. It seems that the rate of growth in 1978 will be higher (France, Italy, and to a certain degree West Germany).
Quick recovery on the timber market in 1976 did not continue in 1977. It did not relate to all wood products. Coniferous sawn timber and wooden boards were most significantly affected because of the fall in the housing construction. Supply and demand of deciduous timber, with the exception of oak and some exotic species of wood, were rather equalized by the end of the year. There appeared quite opposite tendencies on the deciduous and coniferous timber market in 1978. The coniferous sawn timber market was opened only around the middle of February. At the beginning of spring, the prices of coniferous sawn timber stabilized on a level lower by 20 percent in comparison to the last year prices. There was a growing demand and an increase in prices on the deciduous timber market, and an average growth in prices up to the end of June did not exceed 8 percent.
Early in spring, there has been recorded a fall in demand for some assortments of sawn beech, which has been compensated by a higher demand in the months that followed. Demand for veneer logs of African standard species of wood could not satisfy requirements. The prices of logs in the countries of Southeast Asia have been increased. Sawn timber in Africa has been sold out several months in advance. Permanent poor utilization of capacities in the industry of particle boards continued in the first months of 1978. Keen competition kept the prices on a low level. The European industry of plywood suffered because of competition from Southeast Asia. The prices of the Finnish birch plywood at the end of 1977 and the beginning of 1978 were by 70 percent lower from the prices in the list. From April on, the prices of all manufacturers started to go up. At the end of the first half-year, a recovery on the cellulose market has been recorded. Reduction of stock and the growing demand created conditions for the prices of cellulose to be raised if the prices of paper go up. Early in autumn, there is expected a growing demand and an increase in prices for all wood products.
