ECSC financial report 1978

Abstract

In 1978, as in the preceding year, the rate of economic growth in the Community was low: 2,6% against 2,3% in 1977. Forecasts for 1979 point to a slight acceleration in the growth rate to around 3,5% in 1979. In 1978,_t_be Community iron and steel industry achieved a quite significant increase in produc-tion which reached 132,6 million tonnes against 126,1 million tonnes in 1977 and the 135 million tonnes recorded in 1976; but this was still far short of the level achieved in 1974: 156 million ton-nes. There was a marginal improvement in the rate of utilization of production capacities: 66% in 1978 against S3% in 1977. --c The 5% increase in output recorded by the Community as a whole was close to the world figure of 6%; it reflected the expansion of exports more than a revival of internal demand, which hardly increased above the previous year's level. The net balance pf trade in finished products between the Community and third countries, which had deteriorated from 20,1 million tonnes i.n 1974 to 11 A million tonnes in 1977, improved in 1978 to 16,8 million tonnes. Price increases were again inadequate, despite the better financial results to which the policy car-ried through by the Community had contributed. Even in the special steels market, which was not affected by the crisis, .the situation is still causing concern. But export prices showed a con-siderable improvement, after lagging well behind those obtaining within the ECSC over a long period, ar:td had in fact regained the level of the internal market by the end of 1978.