Leasing Penetration in Bulgaria 2019

Leasing penetration is an indicator which illustrates the interest in investing and refurbishing the economy in a country and the use of leasing finance in the process. Leasing penetration in Bulgaria at the end of 2019, measured as the ratio of new leasing business to GDP for one year, continues to increase and already exceeds the levels of 2009. The leasing penetration in Bulgaria at the end of 2019 was 1.89%, up 10% from the end of 2018.

Leasing penetration into the Bulgarian economy and the dynamics of the national leasing portfolio are closely linked. Here’s how they have evolved over the last 13 years in Bulgaria:

Leasing portfolio vs. leasing penetration in Bulgaria

By leasing penetration in 2019, Bulgaria continues to gravitate around the European average among countries such as Italy (1.73%), France (1.92%) and Switzerland (2%). At the same time, these averages are not enough for a country which is refurbishing its economy. Examples are Slovakia (3.29%), Slovenia (3.58%) and Poland (3.64%).

The trend of a gradual increase in leasing penetration in Bulgaria started in 2015, after the sharp decline and the subsequent turbulence in the values of the indicator due to the 2008 World Crisis.

Leasing penetration in Bulgaria

The leasing penetration in Bulgaria is still far from the record 4 – 5% achieved in the country in 2007 and 2008. Despite the still low values, the indicator shows a sharp increase. The increase in penetration in 2019 is 10% and shows increased investment activity in the country, while there is still a large margin for an increase.

What we may expect in the near future is the continuation of the increase of the leasing penetration, reaching the levels of a rapidly growing economy of above 2.5%, accompanied by a sharp increase in the leasing of machinery and equipment.

Data used:

  1. Bulgarian National Bank – Statistics for the leasing companies in 2019
  2. National Statistical Institute – Macroeconomic Statistics: GDP
  3. White and Clarke Group – Global Leasing Report 2019

Read other articles for the development of the Bulgarian leasing market in 2019: