from the February 2016 issue

Deloitte: Israel 7th in world for defense spending

According to Deloitte, Israel spent 5.2% of its GDP on defense in 2014. The firm sees an upturn in global defense spending in 2016. Israel's defense expenditures in 2014 were 5.2% of the country's gross domestic product (GDP) making Israel 7th in the world for military expenditure as a percentage of GDP according to Global Aerospace and Defense Outlook 2016, released by consulting giant Deloitte.

Oman topped the list (11.6%), followed by Saudi Arabia (10.4%), and South Sudan (9.3%). Israel was 17th in military spending in absolute terms. Its military expenditure totaled $15.9 billion in 2014. The list of 25 countries with the largest defense expenditures was led by the US; the superpower spent $610 billion on defense 40% of the total expenditures worldwide. In distant second place was China, which spent $216.4 billion. Russia was an even more distant third, with$84.5 billion.

The report, authored by Tom Captain, Vice Chairman and US Aerospace & Defense Leader for Deloitte LLP, and Global A&D Leader for Deloitte Touche Tohmatsu Limited, projects growth in the global aerospace and defense market of 3% in 2016, after the market grew 2% in 2014 and 1.5% 2015.

Captain expects a recovery in global defense expenditures in the coming years because of the expanding threat from terrorists, ongoing security tensions, and a lack of stability in the Middle East.

Reprinted from the Israel High-Tech & Investment Report February 2016

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