Since the political and economic changes in 1990, the year 1997 can be considered as a "top" year because the overall economic indicators of the country seem to exceed all previous expectations and Hungary's growth was one of the strongest in the Eastern-Central-European region last year. The increase is, however, sectorally and regionally very uneven.
The GDP has been growing at an accelerating rate, reaching an average of 4 percent in 1997.
The industrial output exceeded the 1996 level by 11 percent. The growth of the finishing industry by 15 percent meant the driving force in the increase (92%) was produced by the machine industry.
The gross foreign debt of the country decreased by US$ 4.3 billion reaching US$ 21.7 billion at the end of the year. The net foreign debt amounts now to 22 percent of GDP, while in 1991 it came near to 50 percent of that.
The deficit of the current account was reduced from US$ 1.7 billion to US$ 1 billion. The foreign trade deficit dropped by US$ 310 million compared to that in 1996. 1997 was the first year in which the balance of trade with the EU was favourable for Hungary.
The interest of foreign investors in Hungary has been continuing. Capital investments amounted to US$ 2.2 billion, of which 42 percent were by United States based companies.
Privatization is practically completed in Hungary. Eighty percent of the once state-owned companies are now sold and the private sector generates today four-fifths of GDP.
Consumer prices rose by 18.3 percent as against 23.6 percent in 1996. The Government promises further moderation of inflation in 1998.
The unemployment rate did not show significant change, reaching 10.4 percent of the economically active population in December.
According to the economic analyses and forecasts the upswing started in 1997 and will be continuing in 1998, but its rate will probably not reach the same level. With impending elections, the development of the world economic situation and the accession efforts of Hungary to NATO and the EU can have a determining effect on the result of the Hungarian economy in 1998.
In 1997 paper consumption increased by 14 percent compared to last year.
|
|
1994 |
1995 |
1996 |
1997 |
1997/1996 |
|
|
(1000 tons) |
% |
|||
|
Consumption |
537 |
509 |
522 |
594 |
114 |
|
Production |
328 |
321 |
363 |
410 |
113 |
|
Export |
78 |
79 |
129 |
161 |
125 |
|
Import |
287 |
267 |
288 |
345 |
120 |
In 1997 the most important change in the Hungarian paper industry was that Neusiedler Ltd (Austria) bought the fine paper unit of Dunapack (a production capacity of 50 000 tons/a of uncoated woodfree printing-writing paper). Together with its acquisition of Szolnok Paper Ltd. last year, Neusiedler Ltd. has a production capacity of about 180 000 tons in Hungary and it has the intention to make a bigger investment in this field, reaching a production capacity of 218 000 tons in 2002.
The other remarkable change took place at Dunapack Ltd. With the sale of its fine paper mill it started the restructuring of its activity and the streamlining of its product range. It has increased the production of corrugated medium and announced an investment project of about US$ 20 million in that area.
The breakdown of paper production by grades and the changes in the last years are shown as follows:
|
|
1994 |
1995 |
1996 |
1997 |
1997/96 |
|
|
(thousand tons) |
% |
|||
|
Total paper and board |
328 |
321 |
363 |
410 |
113 |
|
Newsprint |
- |
- |
- |
- |
- |
|
Coated printing and writing paper |
- |
- |
- |
- |
- |
|
Uncoated printing and writing paper |
80 |
83 |
142 |
169 |
119 |
|
Household and sanitary |
39 |
36 |
37 |
34 |
92 |
|
Linerboard |
28 |
29 |
30 |
30 |
100 |
|
Fluting medium |
106 |
98 |
96 |
110 |
115 |
|
Kraft wrapping and packaging |
30 |
30 |
29 |
34 |
117 |
|
Folding boxboard |
29 |
16 |
- |
- |
- |
|
Other paper and board |
16 |
29 |
29 |
33 |
114 |
In 1997 the Hungarian paper industry used 169 000 t of pulp and 270 000 t of recovered paper as raw material. As the only Hungarian pulp mill is of small production capacity and cannot cover the primary fibre demand of the paper mills, they manufacture from imported pulp. Their main fibre source is, however, recovered paper. It is a welcome change that the share of the domestic recovery paper increases from year-to-year. Nearly one-fourth of recovered paper used by the paper mills last year was imported. There was a surplus in old newspapers and magazines collected in Hungary, but the corrugated waste and the brown grades had to be imported. Last year the recovery rate amounted to 38 percent and the utilization rate to 66 percent.
In the field of forest management the following changes took place in Hungary last year:
|
|
1995 |
1996 |
1996/1995 % |
|
Forest area, t/ha |
1719.7 |
1 735.9 |
101 |
|
Fellings, t/m3 |
6 049 |
6 604 |
109 |
|
Growing stock, mio gross m3 |
308.7 |
314.7 |
102 |
|
Regeneration, first operation, ha |
15 784 |
16 844 |
107 |
|
Afforestation, ha |
6 610 |
8 159 |
123 |
Most afforestation (94%) was undertaken by private forest managers but regional breakdown shows big differences. As in previous years the most significant plantations were realized in the Eastern counties of Hungary.
In 1996 investments and renewals were realized to a value of HUF 2,7 billion, mainly for assets helping directly the basic forest management activity.
Wood felling took place in 1996 on an area of 85 000 ha. The 6.6 million gross m3 of fellings makes up about 80 percent of the potential of annual forestry planning. Unregulated ownership still has an influence in this field.
The continuous deterioration in the health of the forests appears to be slowing down and a moderate improvement can be announced.
The breakdown of the amount of fellings based on the choices of forest products is as follows:
Industrial wood 60%
- Veneer logs 1-1.2%
- Sawlogs 25-28%
- Other industrial utilization 7-9%
- Mining wood products 2-3%
- Fibre and pulp 16-19%
Fuelwood 40%
Production of different forest products in 1996 is shown below as a percentage of the figures in 1995:
|
Product |
1996/1995 (%) |
|
Forest products total |
108.3 |
|
Industrial wood |
110.5 |
|
Round wood (veneer and sawlogs) |
112.6 |
|
Other sawnwood raw material |
80.4 |
|
Mining wood products |
114.6 |
|
Pulpwood |
104.7 |
|
Other industrial wood |
120.4 |
|
Fuelwood |
105.5 |
The domestic sale of sawnwood and wood-based panels is largely determined by the afforestation furniture and building industry markets in Hungary. The growing importation of furniture may only be counterbalanced by an increased export orientation of the furniture industry. Export values of unprocessed forest products decreased in 1996. At the same time panel exports increased significantly.
