The rate of economic growth in 1979 in the West and East has been slower than expected. In the Western industrially developed countries, including the United States, the national product has been growing at the rate of 2.5% and not, as expected, by 3.9%. Instead of falling, inflation has been on the rise and in many countries reached a two-digit value. In the USSR and the East European countries, the rate of growth of national income has fallen to 2%. In 1980, it is expected in the West a further slowing down of the rate of growth with a decrease in the inflation rate. The same development is expected in the East.
Despite the reduction in the rate of growth, the timber market in 1979 has been very active. It has comprised all wood products, including wood pulp and paper. Only the furniture industry in West Europe has not been satisfactory, except Italy, owing to rapid export expansion there. Also, consumption of furniture in the United States has been in expansion. For a number of products, there were fewer offers than demands, resulting in a considerable rise in prices, particularly for sawn coniferous, logs, and sawn deciduous timber, plywood, wood pulp, and paper. Pulpwood prices have also been rising. Manufacturers' stocks of almost all products have fallen below the usual level.
In 1980, there is expected a slow growth of consumption and production, however for most products, a fall or stagnation of import, or stagnation or a modest rise of export. Wood pulp and paper shall, however, continue with expansion. Importers shall make efforts to reduce the stock to cut down costs and to increase liquidity. Prices will moderately grow up also in the first half of the year, while it is still uncertain how the process will develop in the second half of the year.
