Five charts to start your day

Will the US military complex expand or decline in the coming years?

The US military complex is a spectacle to behold. It has always been formidable, dating back to the days of the Civil War, where the industrialised North prevailed through sheer economic power. Similarly, after Pearl Harbor during the Second World War, the US constructed the world's largest naval fleet to confront Imperial Japan.

Today, the US has spent more on defence as it ever has. Ironically, though, the US is not in a period of war. It is not fighting for survival. It's investing a vast amount in defence to protect its supply chains and maintain its economic dominance globally.

This chart is revealing. In 2022, the US accounted for nearly 40 per cent of global military spending, increasing its budget by $71 billion from the previous year, partly owing to military aid provided to Ukraine.

As a result, the US now spends more on its military than the next ten countries combined. The Stockholm International Peace Research Institute (SIPRI) reported that the US spent $877 billion on defence. Despite this, the US's defence spending as a percentage of GDP is projected to decrease from 3.1 per cent in 2023 to 2.8 per cent by 2033, falling below the 50-year average of 4.3 per cent.

Source: Peter G. Peterson Foundation

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