World defence markets growing despite western stagnation

World defence spending outside the United States is expected to increase in the coming fiscal year despite a regional downturn in such expenditures in Europe, according to IHS Jane's budget forecasts.

Western Europe as a whole is expected to see a small decline in military spending, up to 1.6% in Fiscal Year 2013 (FY13), according to IHS Jane's analysts. The major reason for this decline is the continuing reductions in the UK defence budget. UK defence spending is expected to fall from just more than USD60 billion in FY12 to just under USD58 billion in constant 2012 dollars. France's military expenditure is expected to suffer a more mild decline, from USD54.7 billion in FY12 to just more than USD53.8 billion in FY13, again using constant 2012 dollars. Analysts project long-term regional defence spending in Western Europe to fall even more dramatically, from a 2012 total of USD243 billion to USD232 billion by 2016, using constant 2012 dollars.

Meanwhile, overall world defence spending, excluding the US market, is seen growing by about 1.91% over the same time period - thanks in large part to continued robust growth in Russia and China.