Trends in consumer credit are evolving internationally. Today, its growth is mainly driven by emerging countries.
If there is anything that does not fear the economic crisis, it is consumer credit. Old as the world, the first loans had already taken place during the antiquity with the grain trade, even before the invention of money, and they certainly did not stop along the way. However, its trends are changing in terms of its international distribution. Today, its growth is mainly driven by emerging countries.
Let’s talk little, let’s talk about numbers
According to INSEE, Europe (we are talking here about Germany, France, Belgium, Spain, Italy, Hungary, Sweden, Poland and the United Kingdom) only represents 22% of consumer loans in progress. With the economic sluggishness and lack of growth, they are among the countries that have the least consumer credit. The Middle East represents 29% of current prices. Although its evolution is mainly due to emerging countries, the consumer credit market remains dominated by North America representing 41% of loans taken out with a total of 2603 billion euros currently borrowed. The remaining 8% of this market is therefore borne by Africa, Latin America and Oceania.
For a long time now, the top 3 consumer credit consumer countries are made up of the United States, followed by Japan and China. The United States and Canada are both developed countries that have seen a rise in consumption, with growth of 5.8% and 2.8% respectively since 2012. Europe, for its part, saw this figure fall by 1.7%. on the same dates, including Ireland which consumes 14% less credits.
In 2012, representative of market developments, Russia, Argentina, Thailand and Azerbaijan are the countries that saw their consumption increase the most with an increase of nearly 30% each. In short, the global market for consumer credit is proliferating, for example, it has grown by 15.5% between 2009 and 2012.
Different reasons according to the cultures
It is well known that every culture that makes up the world has its priorities. Note that this also applies to the use of consumer credit, at least to the reasons that will push a household to apply. In general, the main motivations are household and / or automotive financing, cash management, leisure-oriented spending, health and education.
In the United States, for example, the most common reason for the demand for consumer credit is the need to cope with the unexpected. These unforeseen expenses will be particularly of real estate origin (with the will to make renovations and repairs) or automobile. In Asia, the country with the largest family size in the world, most of the consumer credit requested will be for studies or weddings. In Africa, it is the cash management that arrives at the top of the motives for this type of credit. In Europe, the main motivation of the typical borrower remains the financing of his car, followed by the financing of studies in some countries of the continent.
In the world, average borrowing per capita is € 910. The United States is at the top of the ranking with € 5620 average loan per American, opposed to Africa, at the bottom of the ranking, which has an average per capita borrowing of € 96. Be that as it may, in a world dominated by consumption like ours, where life on credit is made more and more because of the general distribution of wealth, we can be certain that the growth of this market is not ready to stop.