A retrospective on the general economic situation of Yugoslavia is provided, along with the causes for business cycle movements. It is stated that Yugoslavia, in its technical development, falls behind industrially developed countries, leading to higher dependence on imports due to inadequate planning.
In the timber industries of Yugoslavia over the last two decades, significant structural changes occurred. From embryonal final wood product industries in 1958, it now surpasses the primary timber industries in volume by almost twofold.
It is forecasted that the personal demand for final wood products in the S.R. of Croatia will grow at an approximate annual rate of 2.3. Considering the lack of timber resources in Europe in the future, final wood product industries have an excellent opportunity to increase exports, which may reach about one-third of total sales. Since the final wood product industries of the S.R. of Croatia will probably not operate under optimized conditions, the rate of growth of the physical volume of production should grow by an average annual rate of 3.5 - 4.5.
In the development of timber industries, particularly final wood product industries, technical progress in the past has played a significant role and has compensated for diminishing returns on investments.
