Hot Spots
11/15/2012
Defense Spending
Various countries and latest available figures, including spending per GDP.
United States…$645.7 billion…2011 spending per GDP: 4.5%
China…$92.6 bn…1.3%
United Kingdom…$62.7 bn…2.5%
Russia…$59.5 bn…2.9%
Japan…$59.5 bn…1.0%
France…$52.1 bn…2.1%
Germany…$40 bn…1.2%
India…$31 bn…1.7%
South Korea…$28.2 bn…2.5%
Australia…$27.1 bn…1.9%
Canada…$21.7 bn…1.2%
Italy…$20 bn…0.9%
Taiwan…$10.7 bn…2.0%
Turkey…$10.1 bn…1.3%
Poland…$9.1 bn…1.9%
Norway…$6.3 bn…1.4%
Sweden…$6 bn…1.1%
Pakistan…$5.2 bn…2.6%
Czech Republic…$2.3 bn…1.2%
Source: Defense News / The International Institute for Strategic Studies Military Balance 2012.
One thing stands out in the above. Europe. They need to carry more of their share of the load, but that’s a virtual impossibility in today’s environment.
From the Defense News Staff:
“Defense spending by Europe’s four biggest military powers is set to steadily fall over the next few years as continuing financial strains force further austerity measures.
“Britain, France, Germany and Italy have all been in retreat on defense spending for some time as the need to reduce budget deficits has taken priority. That situation is unlikely to ease soon, and the budget calculations being made around major Western European capitals will likely entail further hits to defense equipment.”
The U.S. is also cutting; $487 billion in planned cuts over the next decade. But, you have the larger issue of an additional $500 billion in cuts over the next 10 years as a result of the “fiscal cliff” issue.
Thankfully for the defense industry, defense spending from the Middle East has been rising.
Hot Spots will return in two weeks.
Brian Trumbore
