– FinancialBuzz.com News Commentary
NEW YORK, Oct. 8, 2020 /PRNewswire/ — According to data compiled by Strategic Defence Intelligence, the U.S. spent over USD 639 Billion in 2018 for its defense budget. By 2023, the U.S. defense expenditure is expected to reach approximately USD 742 Billion while growing at a CAGR of 1.98% during the forecast period. The current presidential administration is friendly to the military and defense contractors and promotes the stance on increasing military defense spending. Additionally, the Department of Defense spending is set to grow by 9% in 2018 from the year prior, Blackrock said in a blog post. “The 2019 National Defense Authorization Act was passed at its swiftest pace in 20 years, up to USD 717 Billion (a 12% increase from 2017). Even after the 13% quarter-to-date decline in the Dow Jones U.S. Aerospace & Defense Index (as of October 29th), the industry group is still up 46% since 2016 Election Day and remains the purest way to play any change in defense spending outlook,” Blackrock said. Defense Metals Corp. (OTC: DFMTF) (TSX-V: DEFN), Lockheed Martin Corp. (NYSE: LMT), Raytheon Technologies Corporation (NYSE: RTN), The Boeing Company (NYSE: BA), General Dynamics Corp. (NYSE: GD).
As a percentage of GDP, the U.S.’s defense expenditure is expected to be approximately 3.1% during the same period. While the United States holds the largest budget for defense technology, it is also the largest exporter of defense equipment in the world. The U.S. are also expected to continue to remain the largest importers, due to increased defense budgets in allied countries such as Saudi Arabia, UAE, Turkey, India, South Korea, Singapore, the U.K. and Japan. “What changes are likely in military technology over the next 20 years? This question is fascinating on its