More NATO countries increase defence spending to 2% of GDP

NATO published its annual report on 19 March, estimating that nine countries met the alliance's target of spending 2% of GDP. Presenting the report during a virtual press conference, NATO Secretary-General Jens Stoltenberg said that he expected allies to continue to increase defence spending, despite the Covid-19 crisis.

Secretary-General Jens Stoltenberg presented NATO’s annual report during a virtual press conference on 19 March. (NATO)

The annual report estimates that Bulgaria, Estonia, Greece, Latvia, Lithuania, Poland, Romania, the United Kingdom, and the United States had met the NATO target that members spend 2% of GDP in 2019.

The lowest spenders in terms of GDP were Luxembourg, at an estimated 0.56%, Spain, at 0.92%, and Belgium, at 0.93%.

In the forward to the annual report, Stoltenberg wrote, “By the end of 2020, allies and Canada will have spent an extra USD130 billion on defence since 2016. This figure is due to rise to 400 billion by the end of 2024.”

Asked by Janes via Skype during the virtual news conference if Covid-19 would affect NATO members' objective to reach the alliance's 2%-of-GDP spending goal and to spend USD400 billion by 2024, Stoltenberg admitted, It is clear that there will be severe economic consequences of the coronavirus crisis and at least in the short term, there will also be severe consequences, not only for the total economy, but also for government budgets. When we speak about the long-term consequences, that is too early to say anything with certainty about what the long-term consequences will be.