European Factoring Industry shows an increase in first half 2021
Gathered data for European factoring market for IH 2021 has shown again year on year increase of 10.7% for European countries, comparing to 6.0% decrease after IH 2020, the year of the crisis and the lockdowns. Total factoring turnover for European countries reached 953 billion euro comparing to 854 billion euro in IH 2020.
Graph 1. Turnover by country IH 2021
The increase in factoring turnover was higher than GDP yearly change of 7.7%. But factoring remains clearly connected to the GDP in Europe. The European factoring, that represents 2/3 of the world market, amounts to 11% of the EU GDP.
Graph 2. Trends of factoring turnover growth and European GDP growth
The trends differ between countries. In almost all countries the increase of factoring y/y is higher than country’s GDP change. Only in Spain, Portugal and Norway the GDP had higher yearly increase than factoring turnover.
Mrs Françoise Palle-Guillabert, Chairman of the EUF, noted: " Whole European factoring market responded positively to economic trends in the first half of 2021. After a one year of drop due to the international Covid-19 pandemic, it again recorded an increase. More than ever, the factoring industry, that finances 260,000 businesses in EU mostly SMEs, has a key role to play in supporting economic recovery, employment and wealth creation in Europe”.