Statistical data of the global factoring were presented on April 1, 2014 in Warsaw, Poland, by Secretary-General of FCI, Peter Mulroem.
The global volume of factoring transactions in 2013 amounted to EUR 2,231 billion showing an annual increase of 4.6%, that is less from an annual growth of 5.8% achieved in 2012. According to Mr. Mulroya these figures show a general decline, especially compared with a splash, which was immediately after the financial crisis of 2009-2011, when the growth averaged more than 25% per year. The total volume of world factoring increased over the past five years, nearly by 1 billion euros.
Internal factoring amounted 1,828 billion EUR of total operations, while international factoring amounted to 403 billion EUR. achieved 18% of global operations, and demonstrating the five-year compound annual growth (CAGR) 24,8%. This is much higher than 13,1% CAGR of domestic factoring and 14.8% of the international factoring during the same period (the total amount of domestic and international operations).
Mr. Mulroy stressed that the factoring industry has witnessed an impressive twenty-year average annual growth rate of 11.7%. In dollar terms the volume of the global factoring increased to $ 3.078 billion over the 2013, which is 10% more than in the previous year in which the domestic factoring amounted 2,522 billion USD, and international factoring amounted to 556 billion USD. Europe dominates in the regional statistical section having carried out 60% of the world’s factoring, with the volume of transactions of 1,354 billion EUR, representing 4.3 per cent increase compared with 2012. Asia grew by 4.7% to 599 billion EUR, North and South America reached 2.1%, which amounts to 192 billion EUR, Africa still does not show growth hovering at 23 billion EUR. Compared with 2012 the rate of Australia jumped to 24% and amounted to 62 billion EUR.
China remains the world leader in terms of factoring volume, showing by 10% bigger increase than any other commercially oriented country, from 343 billion EUR up to 378 billion EUR; performance of the country as a whole grew by 54 % a year during the past five years. China has also been one of the countries that showed double-digit growth in 2013, with an increase of 10 percentage points.
The fastest growing markets were: Korea (54%), Croatia (39%), Colombia (55%), Peru (253%), Morocco (49%) and India (44%).
Britain remained second in total factoring volume, showing an increase of 6% up to 308 billion EUR. Germany showed a high growth rate of 9%, which amounted to 171 billion EUR, as well as the United States gained 8% reaching 83 billion EUR.
Meanwhile, Japan’s performance declined significantly, falling by 21% last year from 97 billion EUR to 77 billion EUR, as well as Brazil, with 28% decline from 44 billion EUR to 32 billion EUR.
Mr. Mulroy explained that the fall of Brazil and Japan performance were caused by a significant devaluation of the local currency, which was the main culprit by comparing the growth countries performance in euro.
Figures show that in 2020 there might be a global shift towards trade finance on open account, mainly of world imports based on the terms of financing open account to the increase of its share to more than 90% of the world trade market. In 2013, all members of the FCI have made more than 60% of the total volume of international factoring.