World Military Spending Remains Flat
June 29, 2001
From 1990 to 1998, world governments reduced their outlays for arms. Since then, world military spending has remained flat.
- From 1990 to 2000, world military spending fell from 3.7 percent to 2.4 percent of global gross domestic product.
- Industrial countries devoted about 2.5 percent of GDP to defense expenditures in 2000, according to International Monetary Fund estimates -- while developing countries spent 2.1 percent of GDP on arms.
- Developing nations in the Middle East allotted 7.8 of GDP to military spending -- or about 29 percent of their total government spending.
- The newly industrialized Asian economies spent 3.3 percent of GDP -- or 15.4 percent of government outlays -- on the military.
The lowest spenders were the developing countries of the Western Hemisphere. They devoted just 1.2 percent of GDP -- or 7 percent of government budgets -- to military matters last year.
Source: Gene Koretz, "Economic Trends: Arms Spending: The Slide Stops," Business Week, July 2, 2001.
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