Factoring guarantees more than 11% of the european GDP

06 Dec 2021
Factoring guarantees more than 11% of the european GDP

Factoring is strengthening its weight in the European economy in this second pandemic year, as shown by data for the first half of the year, revealed by EUF, the European Federation of the sector. The accumulated amount in the European continent almost reached a trillion euros in the first half of 2021.

In Portugal, Factoring represented, at the end of the first semester, 15.4% of the country's Gross Domestic Product (GDP), as a result of a 4.1% growth in the turnover in comparison with the same period in the last year. In the first six months of this year, total turnover by Factoring in Portugal was around 15.8 billion euros.

The growing weight of Factoring in the European Union is strongly driven by performance in the biggest players of this industry, France, Germany and Italy. Together, the three markets account for 55% of the 787.2 billion euros registered by Factoring in the common area. In these countries, the factoring business grew faster than their respective GDPs, with Germany standing out with an 8.6% increase in Factoring.

The resilience of Factoring is also seen when we consider the continent as a whole - including the United Kingdom, the second largest market - with a clear recovery in line with the Union area, with a production of 953.4 billion euros. In the first half of 2020, a period partially limited by lockdowns across the continent, European countries totaled only 853.2 billion euros in turnover.

The recovery in the first half of 2021 represents a return to growth, even compared to 2019 figures, when the European market took 896.5 billion euros, compared to 953.4 billion in 2021.

"In the first half of 2021 we noticed a clear increase in the use of Factoring by companies as a reflection of the increase in economic transactions," notes Pedro Cunha, vice president of the Portuguese Association of Leasing, Factoring and Renting (ALF) responsible for Factoring. "As shown so well by the European 'engine', Germany, Factoring is a key piece to give companies a support that ensures agility and security in payments and receivables, allowing them to focus on challenges and key investments, such as innovation, digitalization, fighting climate change and fundamentally, to develop their business," reinforces the spokesman for ALF, national association member of the European Factoring Federation (EUF).

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