Invasion of Ukraine to push global defence spend above $2.2 trillion by 2026
www.janes.com/defence-news/news-detail/invasion-of-ukraine-to-push-global-defence-spend
Acceleration of European spending has been building for several years
In dollar terms Europe added the most funding to its armed forces’ budgets this year; USD30.7 billion, although 80% of this increase is accounted for by Germany’s dramatic rise.
While this year’s spike in European growth was brought about in large part in reaction to Russia’s recent invasion of Ukraine, defence budgets on the continent have been expanding ever-quicker since Russia first began supporting the secession regions of Donetsk and Luhansk and annexed Crimea in 2014.
In the 10 years to 2015 Europe’s defence spend was almost totally static in real terms. In the 10 years that follow it’s on course to have grown at an average annual rate of 3.2%, or just over 45% across the entire period.
As such, defence spending in Europe is expected to reach USD414.2 billion in 2025, from USD373.4 billion in 2022 and USD284.7 billion in 2015.
“While several countries plan to increase the size of their armed forces, and operational costs will also grow to reflect the increased threat level, investment is still the area that will have the easiest time absorbing any defence budgetary increase in the short to medium term” said Ana-Roxana Popescu, Janes lead analyst for European defence budgets. “Defence investment is thus set to reach USD134.6 billion in 2025, from USD86 billion in 2021, a 57% increase.”