Throughout history, a region or country’s economic growth has often been followed by a rise in defence spending.
Asia-Pacific as a region is witnessing this phenomenon currently.
In fact, it is the only region in the world that has seen a steady rise in defence spending over the past five years and the trend is likely to continue at the Singapore Airshow, which gets under way this week.
“The centre of gravity of defence expenditure is expected to continue to shift towards Asia-Pacific in 2014, following the trend of economic expansion,” says Paul Burton, a director at IHS Defence.
The company expects Asia-Pacific to account for nearly 28% of global defence spending by 2020, up from 24% last year.
And most of this is being driven by two factors: fulfilling ambitions of global dominance and fears of heightened threats to their security.
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at firstname.lastname@example.org. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.