UK defence budget increased to 2.5% by 2027 as geopolitical landscape darkens
UK Prime Minister Keir Starmer raises defence spending, while both NATO and President Trump demand significant further increases.
China is producing naval vessels at a rate that will soon see the People’s Liberation Army Navy (PLAN) eclipse the US Navy (USN) in force structure and capabilities in the Asia-Pacific region. Sources indicate that China is intent on replacing the US as security guarantor for the region, and could use its position to force regional neighbours to serve as tributary states.
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UK Prime Minister Keir Starmer raises defence spending, while both NATO and President Trump demand significant further increases.
Increased drone use in Ukraine and in Middle Eastern conflicts has created a strong impetus to develop laser and radio-frequency firepower as exploration of direct-energy technology intensifies.
The new figure is an increase from US$75.8 billion in 2024 and showcases the country’s focus on its Saudi Vision 2030 to achieve a diversified and sustainable economy, reducing the Kingdom’s dependency on oil.
Financial reporting season for the calendar year of 2024 has continued to show substantial growth for defence companies as countries across the world, particularly those in Europe, open the chequebook.
There has been increased pressure from the second-term Trump administration in the US, as there was in the first term, for increased defence spending from non-US NATO countries, a move which is noted by Europe as already occurring.
Better integration of systems and sensors across the branches will be critical to ensuring deterrence and readiness.