Turkey’s defence budget is expected to reach $15.8bn in 2023, witnessing a compound annual growth rate (CAGR) of 8.36% over the forecast period, according to a report by Strategic Defence Intelligence (SDI).
Titled ‘Future of the Turkish Defense Industry – Market Attractiveness, Competitive Landscape, and Forecasts to 2023’, the report provides insights about the Turkish defence industry.
Annual defence spending reached $10.7bn in 2018, recording a CAGR of -5.94% during the period.
Continuous threats from the Kurdish Workers Party (PKK), active participation in peacekeeping missions, reduced dependency on the acquisition of foreign military equipment and Turkey’s disturbed relationship with Greece are factors expected to drive defence spending during the period.
As a percentage of gross domestic product (GDP), the country’s defence budget is expected to average 1.36% over the forecast period, compared to an average of 1.44% reported during the historic period.
The allocation of capital spending is expected to fall marginally to an average of 25.8% during the forecast period, compared to the average of 26.3% during the historic period.
Acquisition of advanced defence equipment and an aim to enhance the indigenous capabilities of the country’s defence industry are claimed to be the major reason behind the budget.
In order to support the growth of capital expenditure over the forecast period, Turkey intends to carry out various acquisition programmes which would include the procurement of physical security, multi-role aircraft, armoured vehicles, submarines, and command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR).
The remaining budget will be assigned to revenue expenditure, which includes personnel salaries, development programmes for military personnel and training.
Turkey’s homeland security spending is anticipated to reach $20.2bn in 2023, representing a CAGR of 11.02% during the forecast period, the report adds.