Australian defence spending estimated at 2.3% of GDP through 2027

Following the news that Australia has increased defence spending, Akash Pratim Debbarma, Defense Analyst at GlobalData, offers his view: “The increased military assertiveness of China in the South China Sea has raised concerns for the other countries in the region, forcing them to boost their defence spending. Along with its increased presence in the Pacific Islands, China’s growing economic and strategic influence is a major concern to Australia’s strategic interests and the increased defence spending seems to be directed at limiting and reducing China’s influence in the region. “GlobalData’s report, “Australia Defense Market Size and Trends, Budget Allocation, Regulations, Key Acquisitions, Competitive Landscape and Forecast, 2022-2027,” forecasts Australia to spend at an average of 2.3% of the gross domestic product (GDP) on defence throughout the period of 2023-27, primarily driven by the necessity to implement its strategic plans and meet its national interests. “However, this increased spending for defence is not just a result of the recent geopolitical events of Ukraine or comments on Taiwan by China. The spending is required to carry on the programs outlined by Australia’s 2016 Defence White Paper and the 2020 Force Structure Plan as strategic requirements to help secure the country against threats. The country has also called for a review of programs and threats, which will be submitted in 2023.” For Editorial Inquiries Contact: Editor Kym Bergmann at [email protected] For Advertising Inquiries Contact: Director of Sales Graham Joss at [email protected]