World military spending grows despite pandemic

Military expenditure worldwide rose to nearly $2tn in 2020, defying the economic impact of the coronavirus (Covid-19) pandemic

Military expenditure worldwide rose to nearly $2tn in 2020, defying the economic impact of the coronavirus (Covid-19) pandemic, researchers said yesterday. Global military spending increased by 2.6% to $1,981bn (about €1,650bn) in 2020, when global GDP shrank 4.4%, according to a report from the Stockholm International Peace Research Institute (SIPRI). Diego Lopes da Silva, one of report’s authors, told AFP that the development was unexpected. “Because of the pandemic, one would think military spending would decrease,” he said. “But it’s possible to conclude with some certainty that Covid-19 did not have a significant impact on global military spending, in 2020 at least.” He cautioned however that due to the nature of military spending, it could take time for countries “to adapt to the shock”. The fact that military spending continued to increase in a year with an economic downturn meant the “military burden”, or the share of military spending out of total GDP, had increased as well. The overall share rose from 2.2% to 2.4%, the largest year-on-year increase since the financial crisis of 2009. As a result, more North Atlantic Treaty Organisation (Nato) members hit the Alliance’s guideline target of spending at least 2% of GDP on their military, with 12 countries doing so in 2020 compared to nine in 2019. There were however indications the pandemic had affected some countries. Nations such as Chile and South Korea openly decided to reappropriate military funds in response to the pandemic. “Other countries, such as Brazil and Russia, did not explicitly say this was reallocated because of the pandemic, but they have spent considerably less than their original budget for 2020,” Lopes da Silva said. Another response, as in Hungary for example, was to increase military spending “as part of a stimulus package in response to the pandemic”. Lopes da Silva noted many nations responded to the 2008-2009 economic crisis with austerity measures, but “this time around it might not be the case”. The world’s two biggest spenders by far were the US and China, with Washington accounting for 39% of overall expenditure and Beijing for 13%. China’s military spending has risen in tandem with its growing economy and has seen an increase for 26 consecutive years, reaching an estimated $252bn in 2020. The US also increased its spending for the third year in a row in 2020, after seven years of reductions. “This reflects growing concerns over perceived threats from strategic competitors such as China and Russia, as well as the Trump administration’s drive to bolster what it saw as a depleted United States military,” Alexandra Marksteiner, another author of the report, remarked in a statement. Lopes da Silva however noted that the new “Biden administration has not given any indications that it will reduce military spending”.