Asia Pacific Defence Spending Continues to Rise

February 10, 2014 Share Print 0

Throughout history, a region or country’s economic growth has often been followed by a rise in defence spending.

Asia-Pacific as a region is witnessing this phenomenon currently.

In fact, it is the only region in the world that has seen a steady rise in defence spending over the past five years and the trend is likely to continue at the Singapore Airshow, which gets under way this week.

“The centre of gravity of defence expenditure is expected to continue to shift towards Asia-Pacific in 2014, following the trend of economic expansion,” says Paul Burton, a director at IHS Defence.

The company expects Asia-Pacific to account for nearly 28% of global defence spending by 2020, up from 24% last year.

And most of this is being driven by two factors: fulfilling ambitions of global dominance and fears of heightened threats to their security.

via BBC

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.