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 NATO spending boost infographic
Graphic shows public support for NATO defence spending in 2023 and latest share of GDP by allies.
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MILITARY

NATO countries to step up on defence spending

By Duncan Mil

April 10, 2024 - Despite world defence spending reaching a record $2.2 trillion last year, 77% of citizens of NATO countries believe they should increase or maintain defence spending -- up from 70% in 2021.

The twin threats of Russian President Vladimir Putin’s invasion of Ukraine and China’s territorial claims on Taiwan mean the U.S. and its European allies need to ramp up their defence spending dramatically.

China announced in March that it will boost defence spending by 7.2% in 2024 to 1.7 trillion yuan ($236.1 billion) -- the most in five years.

“The percentage rise is the same as last year, and the third year in a row where we’ve see an increase of 7% or more,” Meia Nouwens, a senior fellow at the International Institute for Strategic Studies think tank, said.

In 2023, 11 nations met NATO’s Defence Investment Pledge of 2% of GDP, up from three in 2014.

Security officials caution that military budgets may need to mirror Cold War spending, potentially reaching as high as 4% of GDP. This could translate into more than $10 trillion of additional commitments over the next decade, a significant financial consideration, as reported by Bloomberg.

“The post-Cold War ‘peace dividend’ is coming to an end,” said Jennifer Welch, Bloomberg Economics’s chief geoeconomics analyst. “That’s likely to have a transformative effect on defence companies, on public finances and on financial markets.”

Sources
PUBLISHED: 10/04/2024; STORY: Graphic News; PICTURES: Getty Images
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