11 Countries Where defence Spending Is Soaring

US army

Photo: Wikimedia Commons

Global defence expenditure was estimated to have been up 1.3% to $1,630 billion in 2010, according to the Stockholm International Peace Research Institute (SIPRI).The U.S. now accounts for 43% of global defence spending, but in Europe military spending dropped 2.8% on account of the global recession. Germany and Italy have shown significant declines in their defence budget.

In a new report Nomura, via SIPRI, has highlighted countries that have massively boosted military spending. We featured the 11 countries that have increased the spending the most between 2001 and 2010, the drag on GDP in 2010, and even highlighted some of their major arms suppliers.

#11 France

Change between 2001 - 2010: 3.3%

Share of GDP 2010: 2.3%

Real spending 2010: $59.3 billion

The French army uses arms supplied by PGM Précision, FN Herstal, Lockheed Martin, BAE Systems, Eurocopter and NHIndustries among others.

Source: Nomura

#10 United Kingdom

Change between 2001 - 2010: 21.9%

Share of GDP 2010: 2.7%

Real spending 2010: $59.6 billion

The British army uses weapons manufactured by Heckler & Koch, Vickers Defence Systems, Saab, and MBDA among others.

Source: Nomura

#9 Brazil

Change between 2001 - 2010: 30%

Share of GDP 2010: 1.6%

Real spending 2010: $33.5 billion

Saab is in talks to sell the Gripen to Brazil and BAE systems is also reported to be pursuing Brazil aggressively.

Source: Nomura

#8 South Korea

Change between 2001 - 2010: 45.2%

Share of GDP 2010: 2.8%

Real spending 2010: $27.6 billion

South Korea relies on local companies like Hyundai Rotem and Samsung Techwin, while its international suppliers include Heckler & Koch, Rockisland Arsenal and Russian Kurganmashzavod. South Korea gets most of its arms from the US, Eurozone, Israel and Russia.

Source: Nomura

#7 Australia

Change between 2001 - 2010: 48.9%

Share of GDP 2010: 2%

Real spending 2010: $24 billion

Australia's suppliers include Eurocopter, Elbit Systems, Boeing via its subsidiaries, and Rock Island Arsenal among others.

Source: Nomura

#6 Canada

Change between 2001 - 2010: 51.8%

Share of GDP 2010: 1.5%

Real spending 2010: $22.8 billion

Canada uses vehicles and equipment manufactured by General Motors Diesel Division. It has recently bought Leopard C2's from the Netherlands and Germany.

Source: Nomura

#5 India

Change between 2001 - 2010: 54.3%

Share of GDP 2010: 2.7%

Real spending 2010: $41.3 billion

Earlier this month India approved a $4.1 billion proposal to by 10 military aircrafts from Boeing. Meanwhile, the Indian defence ministry is also looking to acquire 126 war planes for about $10 billion from either France's Dassault Rafale or Eurofighter.

Source: Nomura

#4 Saudi Arabia

Change between 2001 - 2010: 63%

Share of GDP 2010: 10.4%

Real spending 2010: $45.2 billion

Saudi Arabia uses arms and vehicles made by Lockheed Martin, AM General, General Dynamics Land Systems, Uralvagonzavod and Panhard among others.

Source: Nomura

#3 United States of America

Change between 2001 - 2010: 81.3%

Share of GDP 2010: 4.8%

Real spending 2010: $698 billion

The U.S. uses vehicles and arms manufactured by AM General, Colt defence, H & R, Boeing and Lockheed Martin, among others.

Source: Nomura

#2 Russia

Change between 2001 - 2010: 82.4%

Share of GDP 2010: 4%

Real spending 2010: $58.7 billion

The Russian army has been supplied by Votkinsk Plant State Production Association, Sukhoi, Mikoyan, Kamov, and IAI, among others.

Source: Nomura

#1 China

Change between 2001 - 2010: 189%

Share of GDP 2010: 2.1%

Real spending 2010: $119 billion

The Chinese army is supplied by the Academy of Rocket Motors Technology (ARMT). Russian company Almaz Antei reportedly signed a $2.25 billion contract with China and the company is said to be developing a partnership with the country.

Source: Nomura

Now here are some European countries with far less extravagant defence budgets...

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