Eight years on from the financial crises, the recovery in the EU timber market remains slow and fragile. There is Europe-wide economic growth and key market sectors such as construction, furniture, and flooring are expanding, but the rate of increase rarely exceeds 2% per year in any individual sector or European country and some are still flat-lining. Deflation remains a constant threat despite a €60 billion-a-month programme of quantitative easing implemented by the European Central Bank – recently extended at least until March 2017.
Continue reading “EU Recovery Still Slow and Fragile – ITTO European Market Report 30th September 2016”Indonesia Will Issue First FLEGT Licenses in November – ITTO European Market Report 15th September 2016
The Indonesian government and European Commission (EC) have announced that the first FLEGT licenses will be issued in November 2016. After 13 years of effort to develop a framework to license the legality of all wood exported from Indonesia to the EU, this is a major achievement. The key issue now is whether the licensing system will deliver in terms of improved export market access, sales and profitability. The jury is still out on that and there are downside risks in the short term, but long-term prospects are good.
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