Global Arms Sales Reach New Record high
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Last year, the world’s hundred largest arms manufacturers experienced a 5.9 per cent increase in turnover compared to the previous year, marking yet another record high. The Ukraine war is one of the driving forces behind the global demand for weapons.
(Photo: Vadim Ghirda / AP / NTB)
Global Arms Sales Surge as Ukraine War Fuels Demand
Stockholm, Sweden – Global military expenditure continued its upward trajectory in 2023, reaching a staggering $2.44 trillion, according to new figures released by the Stockholm International Peace Research Institute (SIPRI). This marks the eighth consecutive year of growth, with the war in Ukraine being a major catalyst.
SIPRI’s report highlights a significant increase in arms spending across Europe, driven largely by frontline states and their allies. “The increases in military expenditure that started in 2022 continued in 2023, with Russia’s invasion of Ukraine as a major driver,” saeid SIPRI Senior Researcher Dr. Diego Lopes da Silva. “european states significantly increased their military spending, notably those bordering Russia.”
The United States remains the world’s largest military spender, accounting for 37% of the total. Though, even the US saw a modest increase of 6.8% in its expenditure. China’s military spending continues to rise, even though at a slower pace than in previous years.
Beyond Europe, several other regions also experienced growth in military expenditure. The Middle East saw a particularly sharp increase, while India’s spending rose due to regional tensions and a focus on modernizing its armed forces.
The surge in demand for weapons has benefited major arms-producing companies. The top 100 arms producers globally reported combined arms sales of $607 billion in 2022,a 13% increase from the previous year. North American and European companies dominate the industry, accounting for over 90% of the total sales.
The long-term implications of this sustained increase in military spending are concerning. Resources diverted to military purposes could be used for vital social programs, such as healthcare, education, and climate action.Furthermore, the increased availability of weapons raises the risk of escalation and conflict in already volatile regions.
!The war in Ukraine is one of the driving forces behind the world’s demand for weapons. Photo
The war in Ukraine is one of the driving forces behind the world’s demand for weapons. Photo
Global Arms Turnover Reaches Record High of $679 Billion
The record turnover thus ended at 679 billion dollars. This appears from a report from the Stockholm International Peace Research Institute (Sipri).
The amount corresponds to just over NOK 6,906 billion.
- Last year’s global arms turnover reached the highest level ever recorded by Sipri, as manufacturers cashed in due to high demand, says Sipri researcher Lorenzo Scarazzato in a statement.
Turnover growth for the period 2015-2024 was 26 per cent, according to Monday’s report from the Swedish Peace Research institute.
Europe is driving the upswing
Europe accounts for most of last year’s growth, but there is also growth everywhere else, with the exception of Asia and oceania, Jade guiberteau ricard, another Sipri researcher, tells the AFP news agency.
The demand in Europe is linked to the war in Ukraine, as well as the strengthening and modernization of defense in European countries, he says.
39 of the world’s hundred largest arms manufacturers are in the USA, among them the three largest: Lockheed Martin, RTX (formerly Raytheon Technologies) and Northrop Grumman. the 39 American arms manufacturers had a growth of 3.8 percent from 2023 to last year, to a turnover of 334 billion dollars, almost 3,400 billion kroner.
Global Arms Sales: China Declines, Israel Remains Strong
Global arms sales among the top 100 companies saw mixed results in the past year, with Asia and Oceania experiencing an overall decline while Israeli manufacturers continued to thrive. These findings come from a recent report by the stockholm International Peace Research Institute (SIPRI).
China’s Arms Turnover Falls
Asia and oceania were the only regions to see a decrease in arms turnover in the last year, with a collective 1.2 percent decline, totaling $130 billion (approximately 1,320 billion kroner). SIPRI identifies China as a significant factor in this downturn.
According to Nan Tian of SIPRI, a series of corruption allegations within Chinese arms procurement led to the postponement or cancellation of considerable arms contracts in 2024. Additionally, uncertainty surrounding China’s defense modernization efforts contributed to the decline. https://www.sipri.org/
Though, other Asian manufacturers experienced growth. Japanese and South Korean arms companies benefited from increased demand from European nations,boosting their revenue.
Israeli Weapons Maintain Popularity
Despite increased international scrutiny regarding its actions in Gaza, demand for Israeli weapons remains high. Nine of the world’s hundred largest arms producers are located in the Middle East, generating a combined turnover of $31 billion (roughly 315 billion NOK) last year.
Three Israeli arms manufacturers accounted for over half of this total, achieving a combined turnover growth of 16 percent, reaching $16.2 billion. SIPRI researcher Zubaida Karim noted that “Increased opposition to israel’s actions in Gaza seems to have had little impact on interest in Israeli weapons.” https://www.sipri.org/
note: As of December 1, 2024, SIPRI is the leading international institute dedicated to research into all aspects of conflict, including arms trade, arms control and disarmament. Their data is widely considered the most authoritative source on global arms sales.