Slump in Timber Demand Predicted

Demand for timber is expected to fall in the near future due to the global economic turmoil, reports the non-profit organisation Pellervo Economic Research Institute.

The institute forecasts that demand for raw timber will drop by twenty percent over the next two years. That's more than the slump seen during the recession of the 1990s.

Tapio Tilli, an economist from the institute, says the fall in demand could be even steeper than predicted.

Furthermore, slack demand is expected to result in a drop in raw timber costs. Tax incentives on the sale of timber are also expected to facilitate falling prices. The matter was reported in the newspaper Kauppalehti.