Global wood furniture consumption over the next few years may slow down due to difficulties in Russia, low oil price as well as a more subdued Chinese economy. Europe’s financial instability as well as the “Brexit” issue continue to threaten mid to long term outlook for the world market.
The German IFO Institute’s Eurozone Economic Climate report cite risks for further economic stabilisation in a possible escalation of the conflicts in the Middle East, which could “unsettle consumers, producers and investors across the world”. Moreover, the report also fears that “the ongoing structural transformation of the Chinese economy, from an export and investment-driven economy to a consumption-driven one may once again lead to capital outflows from the emerging countries”. This could lead to renewed turbulence in financial markets.
For this year, the report expects recovery in the Eurozone to continue at a moderate pace. Private consumption is expected to be the main driver behind the small GDP upturn of around 0.4% in each of the first and second quarter of 2016.