Leasing market 2016

Estonia, as a member of EU is greatly influenced by world economy especially economic trends and political instability in EU as well as in the neighboring country's.

In 2016 GDP growth was 1,2%. Our unemployment rate of 6% was one of the smallest compared the last five years. Inflation rate was 0,1%.

New leasing business carried out in 2016 by members of our Association was 1 093 million EUR. It was a growth of 17,2% compared to 2015.

Total lease portfolio of the members was 2,3 billion EUR, with a growth of 8%.

The main contract type according to the lease portfolio was finance lease (55%). Operating lease held 40% and hire purchase as much as 5%.

When observing lease new sales by assets, then machinery and equipment sector growth was the biggest 20% followed by  vehicle sector with 18%. Commercial vehicle sector growth was 20%. Other sectors are of minor importance.

Analyzing equipment leasing in 2016 by type of customers shows clearly, that the leading position was held by agriculture, forestry, fishing sectors by 27%, followed by construction and industry sector by 26% and private sector by 19%. Private sector holds the biggest share of the whole portfolio by  63%.

Primary contract terms show that 66% of the contracts were signed for 3-5 years. 

Most of our members are also offering factoring. In 2016 total factoring turnover was 2,5 billion EUR. Residuals reached to 314 million EUR, growing by 2%.

Lease financing still plays significant part in Estonian economy. According to the valuation of the Association and World Leasing Yearbook the annual leasing volume of Estonia, as a percentage of GDP has been world highest for more than last ten years (5,91 in 2014). We intend to keep that level.

Main goal for the Estonian Government is to ensure that Estonian economy can develop steadily despite of the hectic economic- and political situation in the World.