Preliminary 2022 survey results for the leasing sector
Leaseurope, the trade association representing the European leasing and automotive rental industries, has released the results of its preliminary survey of the European leasing market for 2022. They show that the leasing market saw a positive year despite persistent uncertainties. In 2022, total new business volumes grew by 7.3% compared to 2021, while the outstanding portfolio expanded at 5.2% among the member associations reporting. New business volumes for equipment grew by 8.7% in 2022. Albeit at a slower rate, vehicle leasing also expanded by 7.6%. Among the main asset categories, real estate leasing experienced a contraction of -6.5%. All national leasing markets across Europe saw relatively stable or positive results in total new leasing volumes, with over one-third of countries recording double-digit growth in 2022 compared to the previous year. The greatest increase in new business was observed in the Central Eastern European countries, namely Croatia, Bulgaria, Slovakia, and Hungary. The Turkish market, which saw an extreme growth rate in 2022, is an exception since the country experienced a remarkably high inflation rate. It should be noted that the overall results should be interpreted with caution as the European inflation rate reached a record high level in 2022.
“Despite the persistent challenges posed by soaring energy prices, supply chain bottlenecks, and a high-interest-rate environment, the leasing business has demonstrated remarkable resilience, as evidenced by positive preliminary results in 2022. In fact, business investment remained buoyant last year in spite of prevailing economic headwinds, primarily attributed to the effective utilization of the Recovery and Resilience Facility (RRF) which is expected to continue to have a positive impact on future investments. While the tightening financing conditions may impose some constraints on investment, the projected increase in business investment is underpinned by the gradual normalisation of economic activities and the healthy financial position of corporations. Given the forecast, the leasing sector anticipates further growth in volumes throughout 2023, bolstered by supportive EU policies that prioritise business investment, particularly in the realm of financing the green transition.”