Economic Commission for Europe
Timber
Committee
Fifty-ninth session
2 � 5 October 2001, Geneva
MARKET STATEMENT OF THE CZECH
REPUBLIC
1.General
economic situation
Czech economy entered the year 2000 expecting mild
acceleration of its economic growth. Its results were even better than
expected - GDP grew 3.1 % year-on-year (at constant prices of the year
1995). However, it failed to achieve needed harmony among key objectives
of the economic policy.
Despite the considerable growth of output, exports
of goods, and gross fixed capital formation, the trade deficit exceeds
for a long time the limit compatible with the aim to reduce the extent
of external imbalance.
After the year of renewed growth of Czech economy
and based on the growth of GDP after its ten-year fall, aggregate economic
results were expected with considerable optimism during 2001. The ability
of the economy to pass from its revival to rather dynamic development was
confirmed in the first quarter of 2001, which saw a significant rise in
the production of industry and construction. Constant price GDP grew 3.8
% year-on-year in the first quarter of 2001, and excellent results were
achieved in industry and construction in particular.
The boom of industrial production in the year
2000 showed itself in the 5.1 % year-on-year increase of the production.
Considerable dynamics was recorded for the manufacture of wood and wood
products, of rubber and plastic products, of textiles and textile products,
and of electrical and optical equipment. Compared with 1999, the output
of wood-working industry and pulp and paper industry, including publishing,
grew 15 % and 1.5 % (average prices of the year 1994), respectively.
Since January 2001, industrial production has been
on the increase steadily � its increase in January to June stood at 8.5
% year-on-year. Growing foreign demand, expanding cooperation with foreign
companies and rising exports in consequence, and foreign investment inflow
positively influenced the growth in particular.
The year 2000 was the year of the growing output of
construction, which was 5.3 % up on previous year (at constant prices
= average prices of the year 1994). The growth took place in new construction,
reconstruction and modernization. The volume of construction work in terms
of current prices stood at CZK 231.9 billion.
Construction increased its output in January to June
2001 considerably. The volume of construction work was the highest since
1994, growing year-on-year at constant prices and by 14.6 % at average
prices of the year 2000. It stood at CZK 116.1 billion (current prices)
and was concentrated on new construction, reconstruction and modernization
of large constructions such as transport constructions.
In external trade, trade deficit grew twice
in 2000 compared with 1999, totalling CZK 126.8 billion. Imports and exports
were 28.2 % and 23.3 % up, respectively, the growth of the former being
primarily affected by high prices of crude oil and natural gas in external
markets and depreciation of the Czech crown with respect to US dollar.
Another factor that stimulated imports was the revival of domestic demand,
especially for investments.
External
trade in goods continued its 2000 trend in 2001, which especially holds
for the second half of the reference year. January-June exports amounting
to current CZK 694 854 million FOB/FOB grew 19.7 % and exports worth CZK
641 560 million FOB/FOB were 19.0 % up (all year-on-year). Trade deficit
(CZK 53.3 billion FOB/FOB) was CZK 11.9 billion higher on the first half
of the previous year. In June, the drop in the growth rate, which started
in May, became even bigger and reflects the economic developments, especially
in the EU member countries.
Balances
of trade in manufactured goods (CZK +10.5 billion) and agricultural and
food products (CZK -9.8 billion) remain approximately at the level of the
corresponding period of last year. On the contrary, the deficit of trade
in raw materials, semifinished, and chemical products (CZK -67.8 billion)
was CZK 22.1 billion higher than in January-June 2000. Machinery and transport
equipment grew their CZK 4.4 billion trade surplus in July-December 1999
to CZK 13.8 billion.
2.Developments
in forest products markets sectors
Pulp
and paper
Production
of wood pulp in 2000 grew 12.5 % year-on-year to 637 thousand tonnes,
imports dropped 15.7 % to 122 thousand tonnes, and exports increased 12.8
% up to 290 thousand tonnes. Production of other pulp, from other fibres
than from wood and from salvaged fibres dropped one third to 4 thousand
tonnes. Consumption of salvaged waste paper for the manufacture of paper
grew 12.6 % to 365 thousand tonnes.
Bleached
sulphate and sulphite chemical pulp are main items of imported and exported
assortments, respectively. In trade in wood pulp, average prices per unit
(tonne), of the assortment as a whole, in terms of CZK FOB/FOB increased
42.5 % (imports) and 56.6 % (exports) in 2000 year-on-year. Imports were
implemented mostly from European countries and (smaller part) South America,
exports went to European countries only.
The
assortment of paper and paperboard grew its production 4.4 % to
804 thousand tonnes in 2000, imports grew 16.2 % to 581 thousand tonnes
and exports 14.7 % to 536 thousand tonnes. The trend - higher imports paper
and paperboard of than exports - has been on the increase since 1996. The
products were imported from European countries and exported (6 % of the
output only) outside Europe. Average prices per unit (tonne), of the assortment
as a whole, in terms of CZK FOB/FOB were 5.5 % (imports) and 15.7 % (exports)
up in 2000 compared with 1999.
The
first half of 2001 saw no substantial changes in the production of wood
pulp and paper and paperboard, compared with 2000. There are no substantial
changes in exports or imports, either; export prices dropped slightly.
Roundwood
including pulpwood
In
2000, compared with 1999, removals of roundwood grew 1.67 % to 14
441 thousand m3, of which industrial wood accounted for 1 %
(to 13 501 thousand m3) and fuel wood 1.9 % (to 940 thousand
m3), imports increased 16.7 % to 954 thousand m3,
exports decreased 27.4 % to 2 030 thousand m3, and domestic
consumption of roundwood grew 9.6 %.
In
2000, average prices per m3 in terms of CZK FOB/FOB (current
prices), of the assortment as a whole, rose 5,9 % (imports) and dropped
2.5 % (exports) year-on-year.
Removals
of roundwood are expected to see lower growth in 2000 � only 0.4 % up to
14 500 thousand m3) � which should be seen in 2002 too (another
0.4 % to 14 560 thousand m3). Imports and exports of wood products
in 2001should mostly grow on 2000, which also holds for 2002; the years
2001 and 2002 could see a downward trend in the consumption of coniferous
and non-coniferous pulpwood.
Removals
of coniferous pulpwood decreased 1.2 % to 4 436 thousand m3
in 2000, imports decreased 3.5 % to 558 thousand m3, and a considerable
drop was recorded for exports, namely 52 % down to 522 thousand m3.
Consumption of coniferous pulpwood grew 10 %, following the 12.5 % rise
in the production of wood pulp to 637 thousand m3.
Removals
of coniferous pulpwood are expected to grow mildly in 2001 and 2002 � by
0.6 % and 0.7 %, imports should stay at the level of 2000, while exports
are expected to grow to 630 thousand m3 (20.8 %) and 650 thousand
m3 (3.1 %) year-on-year, respectively.
Removals
of non-coniferous pulpwood in 2000 decreased 19 % to 645 thousand
m3, exports decreased 35 % to 293 thousand m3, and
consumption remained the same, all compared with 1999.
A
downward trend is anticipated for the removals of non-coniferous pulpwood
in 2001 � a drop of 1.5 % to 635 thousand m3; the year 2002
is likely to see another drop: 1.5 % to 625 thousand m3. Exports
and imports will probably be same as in the year 2000 (290 thousand m3),
consumption will drop slightly.
Softwood
(sawnwood and logs)
In
2000, production of coniferous sawnwood grew 16.3 % to 3 782 thousand
m3, imports 29.5 % to 219 thousand m3 and exports
14.9 % to 1 701 thousand m3, all year-on-year. There was a considerable
increase in the consumption of coniferous sawnwood in 2000: 18.5 % to 2
300 thousand m3.
Coniferous
sawnwood was imported from European countries. European countries also
accounted for 85 % of exports of coniferous sawnwood, the largest volumes
finding their destination in Austria, Germany and Italy.
The
years 2001 and 2002 should see slight increases in both production, imports,
exports, and consumption of coniferous sawnwood.
In
2000 removals of coniferous logs grew 6.2 % to 7 370 thousand m3,
imports increased substantially (81 %) to 292 thousand m3, exports
dropped 16 % to 962 thousand m3, and consumption grew 12.5 %
to 6 700 thousand m3, all compared with 1999. The largest volumes
were traded in with the neighbouring countries.
Production,
imports, exports and consumption of coniferous logs are likely to grow
slightly in 2001 and 2002.
Hardwood
(sawnwood and logs)
There
was a mild drop in the production of non-coniferous sawnwood in
2000 � 2.7 % to 324 thousand m3; imports increased 28.5 % to
117 thousand m3, exports grew 20.3 % to 77 thousand m3,
and consumption remained approximately the same, as compared with 1999.
Gradual
growth of the production, imports, exports and consumption is of non-coniferous
sawnwood expected in both the year 2001 and the year 2002.
In
2000, removals of non-coniferous logs decreased 11.7 % to 650 thousand
m3, imports and exports grew considerably (31.5 % and 2.5 times,
respectively), and consumption decreased 14 %. The production, imports,
exports and consumption levels of the year 2000 should increase in both
2001 and 2002.
Wood-based
panels
Particle
board
Compared
with 1999, production of particle boards grew 2.8 % to 720 thousand m3,
imports increased 10.5 % to 220 thousand m3, and exports decreased
5.5 % to 398 thousand m3. Domestic consumption was 13.3 % higher,
growing to 542 thousand m3.
Particle
boards were imported especially from Austria, Germany and Poland, exports
were effected to Germany, Hungary, Poland, Rumania, and Slovakia.
Since
2000, the production, imports, exports, and consumption of particle board
assortment have been steadily growing and the trend is expected to continue
by the end of the year 2002.
Fibreboard
Only
MDF is produced of the whole assortment of fibreboard. Compared with 1999,
the year 2000 saw a 7.1 % increase in the production of MDF, which stood
at 75 thousand m3; imports of hardboard, MDF and insulating
board grew 50.5 % to 146 thousand m3, exports 21 % to 86 thousand
m3, and consumption 40.6 % to 135 thousand m3.
The
largest volumes of hardboard, MDF and insulating board were imported from
Austria, Germany, Ireland, and Poland. The products were also exported
to a number of European countries.
In
2001, the situation is not expected to change in the production of MDF
and should be at its 2000 level, but imports, exports, and consumption
should drop mildly. Production, imports, exports, and consumption levels
of 2001 are forecast for the year 2002, too.
Plywood
Compared
with 1999, the 2000 production of plywood grew 4.5 % to 115 thousand m3,
imports increased 33.3 % to 72 thousand m3, exports 16.6 % to
140 thousand m3, and consumption 6.8 % to 47 thousand m3.
Plywood
was imported from a number of European countries and exported to Austria,
Germany, and Italy in particular.
The
year 2001 should see another increase in the production of plywood (4.3
%) to 120 thousand m3and
consumption (6.3 %) to 50 thousand m3, year on year. The same
production and consumption levels are expected for 2002, too.
Certified
forest products
The
Czech Republic is involved in the scheme Pan-European Forest Certificate
(PEFC). Draft national criteria and indicators for sustainable forest management
were designed for the Czech Republic in accordance with PEFC standards,
which were used for the development of a draft system of forest products
certification. The draft was submitted to the PEFC control authority for
discussion and approval, which occurred in May 2001.
The
certification of forest products in the Czech Republic will take place
at the regional level. The preparatory stage of the certification is planned
for completion in the second half of 2001.