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Economic development a key factor
Due to the weakening economy in 2001, both demand and prices went down in North America but were firmer in Europe. Only minor changes in capacity are expected in Europe during 2002. In North America capacity may even decrease slightly. The demand for newsprint is heavily dependent on the general economic environment as advertising is the key consumption driver. Global newsprint demand is expected to remain fairly weak in the beginning of 2002. The situation could improve later in the year provided there is no further weakening in the world economy. Over the past five years global average market growth in newsprint has been about 2% and clearly higher in improved newsprint.
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