2016 preliminary global factoring statistics
Preliminary world factoring statistics indicate that the Industry has overall held its pace with many markets showing significant continued growth. These advances have however been offset by a continued reduction of volume from China, where the downturn has also affected international figures of trade counterparty countries such as the USA – although in this case the reduction appears to have mitigated with an increase in domestic business, at least in respect of FCI members.
The total volume estimated for 2016 amounts to 2,355bn euro, which is marginally lower than in 2015 where it reached 2,367bn euro. FCI members account for 55% of the world estimated domestic volume, 82% of international and 61% of the total.
Cross border two factor volumes in the first two months of 2017 seem to indicate that the most challenging times have passed and that this sector will return to positive territory this year.
European markets show a 2.5% increase; however, it must be remembered that the figures collected are expressed in euro and the UK market which accounts for 20% of European volume is suffering high volatility in its currency and hence recorded a 13.2% drop – which would change to a positive figure were it not for the currency fluctuation.
The rest of the “mature” markets like France (+8%) Germany (+5%) and Italy (close to +10%) show a continued upward trend, whilst, at the other extreme, Turkey’s reduced exports pulled down its total market figure, declining by 10%. It is worth highlighting that the Russian market increased by +40% and the Dutch by +26%.
Despite political turmoil in the USA, in 2016 the Americas grew overall by almost 10%, led by Brazil, which increased over 50%, Mexico 16% followed by Chile 12% and Argentina 22%. The future of the Industry in the region looks very promising and expectations are high.
Africa, which is of course highly dependent of the South African market also shows an interesting growth rate of over 47%. It must be remembered that the data is an estimate based on the figures of the existing members of FCI and hence subject to modifications. It is hoped that the efforts of new players soon start to show positive results.
Asia was, as said, highly influenced by China, which declined 25% in 2016, and by similar results of other traditional strong players such as Taiwan (-10%) and Japan (-9%). In the opposite field, we find Hong Kong (+28%) and Singapore (+4%) and nice growth figures are also reported in Malaysia, Thailand and Vietnam.
The FCI global factoring statistics present on an annual basis the key factoring data around the world. They cover domestic and cross-border factoring volume collected from almost 390 members in 90 countries.
The full final statistical report will be released in May 2017 and will also be made available at the FCI website.