Romania’s defence spending is expected to reach $7.6bn in 2023, registering a compound annual growth rate (CAGR) of 10.15% according to a report by Strategic Defence Intelligence.
Titled ‘Future of the Romanian Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2023‘, the report provides insights about the Romanian defence industry.
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In 2018, the country’s defence budget is valued at $4.8bn, registering a CAGR of 23.57%.
Major factors affecting the nation’s defence spending include an ongoing programme to upgrade and modernise the Romanian Armed Forces to meet Nato standards, as well as participation in international peacekeeping missions.
Defence spending trends are expected to continue this way and reach a total value of $31.3bn in 2019-23.
As a percentage of gross domestic product (GDP), the defence budget is expected to increase to an average of 2.2% during the 2019-23 period, compared with an average of 1.5% reported in previous periods.
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By GlobalDataThe allocation of capital spending is anticipated to increase to an average of 41.7% during 2019-23, compared with the average of 32.6% in other periods, the report adds.
This increase has been attributed to the acquisition of additional F-16 multirole fighter aircraft, aircraft maintenance, repair and overhaul, a high-mobility artillery rocket system rocket artillery system, and a Patriot missile defence system, as well as corvettes, submarines, and 8X8 armoured vehicles.
Additional advanced military equipment fitted with upgraded technology to support modernisation plans is anticipated to drive capital expenditure over the forecast period.
Romania’s homeland security spending is expected to reach $4.9bn in 2023 from the $4.1bn reported in 2018, representing a CAGR of 2.97% during the 2019-23 period.
