International timber market in 1984 and the outlook in 1985

The economic recovery that started in the U. S. gradually extended to the countries of market economy in the other part of the world. Expansion in the U. S. was more significant than in West Europe. However, the rate of growth experienced a downturn in the third quarter and continued in the fourth quarter. Total rate of growth in the U. S. and West Europe will be higher in 1984 than in 1983. The inflation rate in the countries of market economy was on the average lower than in many preceding years. Rates of interest in the U. S. remained high and rate of dollar high. The both of these events had a negative effect on development in the other countries. The timber market in 1984 was stable. Only by the end of the year there was a disturbance on the woodpulp market and a drop of prices. The prices of all products moved up in general, except of particleboards in Europe and softwood lurnber in the U. S. The prices of softwood lumber were unstable in Italy and Austria, too. It is expected a stable timber market in 1985, except for some kinds of wood-based panels because of oversupply on the European market, excessive capacity or increase in competition from South-East Asia, Indonesia in the first place. The demand will remain on a relatively high level, however there are possible disturbances of prices as also by the end of 1984.