World navy spending rises to nearly $2 trillion in 2020
(Stockholm, 26 April 2021) Complete international navy expenditure rose to $1981 billion final yr, a rise of two.6 per cent in actual phrases from 2019, in keeping with new knowledge printed right now by the Stockholm Worldwide Peace Analysis Institute (SIPRI). The 5 largest spenders in 2020, which collectively accounted for 62 per cent of worldwide navy expenditure, have been america, China, India, Russia and the UK. Army spending by China grew for the twenty sixth consecutive yr.
Army expenditure will increase within the first yr of the pandemic
The two.6 per cent improve in world navy spending got here in a yr when international gross home product (GDP) shrank by 4.4 per cent (October 2020 projection by the Worldwide Financial Fund), largely because of the financial impacts of the Covid-19 pandemic. Consequently, navy spending as a share of GDP—the navy burden—reached a world common of two.4 per cent in 2020, up from 2.2 per cent in 2019. This was the largest year-on-year rise within the navy burden for the reason that international monetary and financial disaster in 2009.
Although navy spending rose globally, some international locations explicitly reallocated a part of their deliberate navy spending to pandemic response, similar to Chile and South Korea. A number of others, together with Brazil and Russia, spent significantly lower than their preliminary navy budgets for 2020.
‘We will say with some certainty that the pandemic didn’t have a big impression on international navy spending in 2020,’ mentioned Dr Diego Lopes da Silva, Researcher with the SIPRI Arms and Army Expenditure Programme. ‘It stays to be seen whether or not international locations will keep this degree of navy spending by way of a second yr of the pandemic.’
Robust improve in US navy spending continues in 2020
In 2020 US navy expenditure reached an estimated $778 billion, representing a rise of 4.4 per cent over 2019. Because the world’s largest navy spender, the USA accounted for 39 per cent of complete navy expenditure in 2020. This was the third consecutive yr of development in US navy spending, following seven years of steady reductions.
‘The current will increase in US navy spending could be primarily attributed to heavy funding in analysis and improvement, and several other long-term initiatives similar to modernizing the US nuclear arsenal and large-scale arms procurement,’ mentioned Alexandra Marksteiner, a researcher with SIPRI’s Arms and Army Expenditure Programme. ‘This displays rising issues over perceived threats from strategic rivals similar to China and Russia, in addition to the Trump administration’s drive to bolster what it noticed as a depleted US navy.’
China’s navy expenditure rises for twenty sixth consecutive yr
China’s navy expenditure, the second highest on this planet, is estimated to have totalled $252 billion in 2020. This represents a rise of 1.9 per cent over 2019 and 76 per cent over the last decade 2011–20. China’s spending has risen for 26 consecutive years, the longest sequence of uninterrupted will increase by any nation within the SIPRI Army Expenditure Database.
‘China stands out as the one main spender on this planet to not improve its navy burden in 2020 regardless of rising its navy expenditure, due to its constructive GDP development final yr,’ mentioned Dr Nan Tian, SIPRI Senior Researcher. ‘The continuing development in Chinese language spending is due partly to the nation’s long-term navy modernization and enlargement plans, in keeping with a acknowledged want to meet up with different main navy powers.’
Financial downturn results in extra NATO members passing the spending goal
Almost all members of the North Atlantic Treaty Group (NATO) noticed their navy burden rise in 2020. Consequently, 12 NATO members spent 2 per cent or extra of their GDP on their militaries, the Alliance’s guideline spending goal, in contrast with 9 members in 2019. France, for instance, the eighth largest spender globally, handed the two per cent threshold for the primary time since 2009.
‘Though extra NATO members spent greater than 2 per cent of GDP on their militaries in 2020, in some instances this most likely had extra to do with the financial fallout of the pandemic than a deliberate resolution to achieve the Alliance’s spending goal,’ mentioned Lopes da Silva, Researcher with the SIPRI Arms and Army Expenditure Programme.
Different notable developments
Russia’s navy expenditure elevated by 2.5 per cent in 2020 to achieve $61.7 billion. This was the second consecutive yr of development. However, Russia’s precise navy spending in 2020 was 6.6 per cent decrease than its preliminary navy funds, a bigger shortfall than in earlier years.
With a complete of $59.2 billion, the UK turned the fifth largest spender in 2020. The UK’s navy spending was 2.9 per cent larger than in 2019, however 4.2 per cent decrease than in 2011. Germany elevated its spending by 5.2 per cent to $52.8 billion, making it the seventh largest spender in 2020. Germany’s navy expenditure was 28 per cent larger than in 2011. Army spending throughout Europe rose by 4.0 per cent in 2020.
Along with China, India ($72.9 billion), Japan ($49.1 billion), South Korea ($45.7 billion) and Australia ($27.5 billion) have been the most important navy spenders within the Asia and Oceania area. All 4 international locations elevated their navy spending between 2019 and 2020 and over the last decade 2011–20.
Army expenditure in sub-Saharan Africa elevated by 3.4 per cent in 2020 to achieve $18.5 billion. The most important will increase in spending have been made by Chad (+31 per cent), Mali (+22 per cent), Mauritania (+23 per cent) and Nigeria (+29 per cent), all within the Sahel area, in addition to Uganda (+46 per cent).
Army expenditure in South America fell by 2.1 per cent to $43.5 billion in 2020. The lower was largely on account of a 3.1 per cent drop in spending by Brazil, the subregion’s largest navy spender.
The mixed navy spending of the 11 Center Jap international locations for which SIPRI has spending figures decreased by 6.5 per cent in 2020, to $143 billion.
Eight of the 9 members of the Group of the Petroleum Exporting International locations (OPEC) for which SIPRI has figures lower their navy spending in 2020. Angola’s spending fell by 12 per cent, Saudi Arabia’s by 10 per cent, and Kuwait’s by 5.9 per cent. Non-OPEC oil exporter Bahrain additionally lower its spending by 9.8 per cent.
The international locations with the largest will increase in navy burden among the many prime 15 spenders in 2020 have been Saudi Arabia (+0.6 share factors), Russia (+0.5 share factors), Israel (+0.4 share factors) and the USA (+0.3 share factors).
SIPRI displays developments in navy expenditure worldwide and maintains probably the most complete, constant and intensive publicly out there knowledge supply on navy expenditure. The annual replace of the SIPRI Army Expenditure Database is accessible from right now at www.sipri.org.
SIPRI’s Army Expenditure Database is up to date yearly, and the info set relies on the perfect open-source proof out there on the time it’s compiled. The info set relies partly on adopted budgets somewhat than closing spending through the yr and is adjusted as soon as closing spending figures can be found. These changes are then included within the subsequent annual replace of the SIPRI database. Due to the uncertainties concerning the financial impacts of the Covid-19 pandemic, the distinction between the present estimated navy expenditure figures for 2020 and the adjusted figures, which can be out there within the database from subsequent yr, is more likely to be bigger than in earlier years.
All share adjustments are expressed in actual phrases (fixed 2019 costs). Army expenditure refers to all authorities spending on present navy forces and actions, together with salaries and advantages, operational bills, arms and tools purchases, navy building, analysis and improvement, and central administration, command and help. SIPRI subsequently discourages using phrases similar to ‘arms spending’ when referring to navy expenditure, as spending on armaments is often solely a minority of the full.
For info and interview requests contact Alexandra Manolache, SIPRI Communications Officer, ([email protected], +46 766 286 133) or Stephanie Blenckner, SIPRI Communications Director, ([email protected], +46 8 655 97 47).