Increasingly complex global security likely to drive increased defense spendingStaff Writer | November 16, 2017
Analysis by PwC shows that the compound annual growth rate of defense spending will likely increase in 58 of 71 nations between 2017-2021, as nations respond to a complex global defense environment.
Defense PwC Global Defense Perspectives 2017
The second edition expands the analysis of defense spending to 71 countries. It analyses two parameters: defense prioritization (spending as a percentage of GDP); and security posture – the extent to which countries deploy air and ground forces outside its national boundaries and the amount of military equipment that a nation sells or leases.
The analysis finds that the projected compound annual growth rate of defense spending between 2017-2021 will reverse previous declines in spending between 2012-2016 in 45% of the countries assessed. This includes major players the U.S. and the UK, and emerging economies such as Turkey and Brazil.
The report finds that despite projected growth in spending there is still severe pressure on global players’ defense spending as threats continue to increase including cyber insecurity gaining prominence.
The shift in global economic power from west to east, demographic change and the rise of technology are amongst global megatrends cited in the analysis as having a “profound effect” on defense and security. ■