America’s leading arms manufacturers are facing tough competition in the global market. The arms industry operates differently from other sectors, as it is driven by military threats rather than economic trends or consumer preferences. With ongoing conflicts in various parts of the world, such as Ukraine, Gaza, Israel, Lebanon, and potential tensions in the Taiwan Strait, the demand for military equipment is soaring as NATO leaders convene in Washington for a summit on July 9th-11th.
NATO countries collectively spent a record $1.3 trillion on defense last year, with the United States leading the pack with a budget of $842 billion. European nations, traditionally less inclined towards military spending, are now increasing their defense budgets in response to perceived threats, particularly from Russia. This shift in defense spending is expected to address years of underinvestment in equipment, amounting to around $600 billion. By the end of this year, NATO anticipates that 18 member states will meet the target of allocating 2% of their GDP to defense, a significant increase from just three countries in 2014.
2024-07-07 04:11:59
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