Economics

How Asia's Military Spending Growth is Outpacing the World

  • Region’s military budgets are expected to continue to rise
  • Many regional naval and air force fleets need to modernize

What's Driving Military Spending in Asia?

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Global defense contractors are circling for business in Asia, with countries from Australia to Vietnam upgrading and adding everything from submarines to fighter jets as China expands its military reach.

Defense budgets will keep rising, according to IHS Jane’s, which forecasts spending in the Asia-Pacific region will climb 23 percent to $533 billion annually by 2020. That will put it on par with North America, which is expected to account for a third of global defense spending by then, from almost half now.