Global tensions fuel military budgets

Article Excerpt

According to IHS Jane, a global authority on military matters, global defense spending in 2018 is expected to reach $1.67 trillion. That would be the highest level recorded since 2010 and the 5th consecutive annual increase. It would also represent a 3.3% increase over 2017 levels—and the highest year-over-year growth in a decade (see graph). A recovery in the global economy and rising military threats are the main drivers of military budget increases. Still, defense spending remains low in relation to GDP. Over the last 10 years, global defense spending has dropped to an average of 2.2% of global GDP, down from 2.7%. In the 1960s, military spending averaged 5.5% of global GDP and 4.0% in the 1970s. The U.S., which is already the largest spender on defense (47% of the global total), is expected to raise spending by 4.8% in 2018. Jane expects the U.S. will spend more on targeted areas such as ballistic missile defence, shipbuilding, missiles and munitions, and space-based…

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