•During 1997 the Portuguese economy experienced continued low inflation, a reduction in the Public Sector Borrowing Requirement (PSBR) and an acceleration of economic activity.
•Inflation during 1997 will have remained below 2.25 percent, the level used by the Bank of Portugal as the reference for conducting monetary policy.
•In September 1997 Portugal notified the Commission of the European Union that the PSBR would be 2.9 percent of GDP, equivalent to a 0.3 percent reduction in relation to the already excellent result recorded in 1996.
•GDP in 1997 will have increased by between 3.25 percent and 3.75 percent, i.e. 0.25 percent over the 1996 level.
•For the second year in succession the Portuguese economy has experienced greater growth than the European Union, given that the IMF forecasts an average rate of 2.5 percent for the EU (compared to 1.7 percent in 1996).
The main economic indicators for Portugal are shown in the following table, with a noticeably marked increase in investment (Gross Fixed Capital Formation): D %
|
|
1996 |
1997 |
|
Private consumption |
2.8 |
2.5 - 3.0 |
|
Public consumption |
1.1 |
1.75 |
|
Investment |
6.1 |
11.25 - 12.25 |
|
Domestic demand |
3.3 |
4.5 - 5.0 |
|
Exports |
8.5 |
7.0 - 8.0 |
|
Imports |
7.5 |
9.0 - 10.0 |
|
GDP |
3.3 |
3.25 - 3.75 |
|
Inflation |
2.8 |
2.2 |
|
Unemployment (%) |
7.3 |
6.8 |
•Portugal’s total exports in 1997 will have exceeded 4 000 billion escudos ($21.62 billion), i.e. 8 percent more than in 1996 at current prices.
•Portugal’s total imports in 1997 will have been around 5 800 billion escudos ($31.35 billion), i.e. nearly 10 percent more than in 1996, although it should be remembered that a significant part of this increase was due to the import of fixed assets.
•The climatic conditions in 1997 produced a not very dry summer, so little more than 10 300 hectares of cultivated forest was recorded as being burnt (the second best result in the last 20 years).
•The sawmill industry (coniferous sawnwood is the main product) continued to show stabilised overall production in 1997 (about 1 million m3), of which around 40 percent was for export, representing a reduction of about 7% (in volume) in relation to the previous year.
•The wood panel industry (particle board, MDF and fibre hardboard are the main products), with production of around 1.2 million m3 in 1997, recorded growth in sales both as a result of the increase in public works in the domestic market (EXPO 98, the Lisbon World Exhibition, will be held from 22 May to 30 September) and significant growth in foreign markets (where Portugal sends about 70% of its output).
•The pulp industry (mainly sulphate bleached eucalyptus kraft) recorded overall production of around 1.4 million tonnes in 1997, working at virtually full capacity. Only about a quarter of this was for domestic use (manufacture of printing and writing paper), with almost all of the rest being sold abroad as market pulp.
•The paper industry, with three integrated units (one of them of kraft liner, from unbleached softwood pulp) produced more than a million tons of paper for the second year running, 50 percent of which was paper for graphic uses (mainly produced from Portuguese bleached eucalyptus pulp).
•The recovery rate of used paper approached 40 percent in Portugal in 1997.
•The total exports of forest products in 1997 will have reached 406 billion escudos ($ 2.2 billion), 11 percent more than in 1996 at current values.
•The structure (in value) of forest products over the two years is as follows (1997 estimated):
%
|
|
Timber |
Cork |
Resin |
Pulp |
Paper |
Furniture |
TOTAL |
|
1996 |
16.5 |
29.7 |
1.8 |
19.5 |
27.6 |
4.9 |
100.0 |
|
1997 |
16.9 |
31.0 |
2.0 |
21.3 |
24.2 |
4.6 |
100.0 |
•Total imports of forest products in 1997 will have reached 220 billion escudos ($ 1.2 billion) at current values, 9 percent more than in 1996.
•The structure (in value) of imports of forest products over the two years will have been as follows (1997 estimated):
%
|
|
Timber |
Cork |
Resin |
Pulp |
Paper |
Furniture |
TOTAL |
|
1996 |
28.6 |
4.6 |
1.1 |
4.2 |
53.8 |
7.7 |
100.0 |
|
1997 |
32.3 |
5.1 |
1.4 |
4.9 |
48.1 |
8.2 |
100.0 |
•There has been a public debate in Portugal about the legislative moves resulting from the new Basic Law of Forest Policy, passed unanimously in Parliament in the second half of 1996.
•With a view to reducing pressure on domestic supply and increasing the average age of forests, the major pulpwood consuming industries have made considerable shifts towards importing (which is forecast to continue in future years).
•The forestry sector in Portugal, following the Iberian Declaration on the Principles for Sustainable Forest Management (IBISUS), has actively monitored the work of the ISO’s TC 207 Working Group in the preparation of the bridging document that lays down guidelines for application of ISO 14001 and 14004 to forestry organizations.
•Decisions are expected very shortly regarding expansion of the existing capacity for the production of uncoated printing and writing paper, through wider integration of sulphate bleached eucalyptus pulp, which is already produced by the industry.
