Global defense budgets to exceed $2.5 trillion by 2028: reportNews
July 06, 2023
CHICAGO, Illinois. Global defense budgets will grow by more than $500 billion in the next five years, according to a new report.
The report, from Markets and Markets, predicts that defense budgets will surge from just over $2 trillion in 2023 to $2,546.9 billion by 2028 for a compound annual growth rate of 4.9%.
Developing situations around the globe are prompting this increase in defense spending, the report states.
"For instance, in the Asia-Pacific region, the rise of China's military capabilities has prompted neighboring countries to bolster their defenses," it adds. "Similarly, the Middle East faces security threats from terrorism, internal conflicts, and external aggression, leading nations to allocate significant resources to protect their interests.
"Regional defense cooperation and alliances also influence defense budget allocation as countries seek to enhance collective security and deter potential aggressors," the report continues. "These factors are driving the world defense budget in the forecast period."