Data gathered by EU Federation for Factoring and Commercial Finance for European factoring market for IH 2022 has shown that there was a spectacular growth of factoring turnover, which exceeded 20% y/y. It is the highest half-year growth ever recorded.
This growth was almost two times higher than yearly growth in IH 2021 (11%).
Total factoring turnover for European countries reached 1 trillion 144 billion euro comparing to 953 billion euro in IH 2021. The GDP penetration ratio also increased y/y and reached 12,5% comparing to 11,4% in IH 2021.
European Union countries In IH 2022 represented 83% of the market, had 21,5% y/y growth, 12,5% of GDP penetration, when their countries average nominal GDP increased by 10,2%. EUF members and partners represented almost 95% of total European turnover with 21,2% of turnover growth y/y and had 13,5 % of GDP penetration and 9,2% of GDP growth.
According to information gathered from member countries – such big growth was possible due to:
- Still strong surge of post covid demand
- Necessity to pay off government support
- Inflation
- War in Ukraine - further growth in prices of goods, commodities and energy. Additionally, especially in eastern Europe countries, war caused higher demand due to support actions for Ukraine and rapid inflow of immigrants.
Mr. Fausto Galmarini, Chairman of the EUF, noted: “In the first half of 2022 the European factoring market reported an exceptional growth compared to the same period of the previous year and the global turn over exceeded the amount reached before the emergency for Covid-19 pandemic. The European market is the most developed all over the world and represents more than 66% of the global volumes. Factoring industry is maintaining its key role in supporting the real economy, especially the SMEs that are suffering for the economic trend and the higher costs for inflation, as shown by the number of clients (more than 265.000 businesses) and the amount of advances (274 billion euro – end of December 2021). It has an utmost importance in helping the economic recovery, the employment stabilization and the wealth creation in Europe.”
About the EUFederation
The EUF is the Representative Body for the Factoring and Commercial Finance Industry in the EU. It comprises national and international industry associations that are active in the region. The EUF seeks to engage with Government and legislators
to enhance the availability of finance to businesses, with a particular emphasis on the SME community. The EUF acts as a platform between the Factoring and Commercial Finance Industry and key legislative decision-makers across Europe, bringing together national experts to speak with one voice.
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