Analysis from Janes highlights that the sixth consecutive year of global defence spending growth was bolstered by a 5% jump in Europe as the US budget fell from 2018 spike to USD726.2 billion.
LONDON (January 9, 2020) – According to Janes Defence Budgets 2019 Annual Report, growth in global spending slowed to just 1% compared to the 2018 spike of 6%. While growth slowed in most regions, Europe experienced exceptional growth of 5.2%, outperforming most emerging markets. Six of the ten fastest growing defence budgets in the world in 2019 were situated in Europe – including Bulgaria, which reported the fastest growth globally, with defence spending growing by 125% as the country made payment for eight F-16 Block-70 fighter jets in August.
“While growth in global defence spending slowed dramatically this year, Jane’s projects that global spending growth will moderate to between 1.5-2.0% a year over the next ten years” said Fenella McGerty, principal defence budgets analyst at Janes. “Increases are dependent on the continuation of a stronger emphasis on defence in Europe but also on a return to more robust growth rates in emerging markets.”
Europe tops global growth chart as regional spending approaches USD300 billion
European defence spending is set to hit USD300 billion in the next 24 months, having languished between USD250 billion and USD275 billion since 2005.
Janes notes that Eastern European spending grew by 12% in 2019, the fastest rate globally while growth in Western Europe reached 4%, the fastest rate since the Cold War. Key Western European growth markets in 2019 include Germany and Sweden with respective defence budget increases of 11% and 9%. Germany is now the 7th largest spender globally, up from 9th in 2018.
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