Economic growth in Europe has slowed dramatically in Europe this year and the downturn is likely to persist. European hardwood production has fallen under pressure from both declining volume and quality of log supply and with weak consumption in the European construction and furniture sectors. European wood panels production and consumption is also down compared to the period during and immediately following the COVID lockdowns. However, in this sector, performance is still up compared to the pre-COVID period, having received a boost from green policy measures in the region. Longer term, the future direction of supply and demand in the European region is likely to be strongly influenced by introduction of the EU Deforestation Regulation (EUDR), due to be enforced from start of 2025.