Defence Expenditure of NATO Countries (2010-2017) NATO collects ...

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Defence Expenditure of NATO Countries (2010-2017) NATO collects defence expenditure data from Allies on a regular basis and presents aggregates and subsets of this information. Each Ally’s Ministry of Defence reports current and estimated future defence expenditure according to an agreed definition of defence expenditure. The amounts represent payments by a national government actually made, or to be made, during the course of the fiscal year to meet the needs of its armed forces, those of Allies or of the Alliance. NATO also makes use of up-to-date economic and demographic information available from the Directorate-General for Economic and Financial Affairs of the European Commission (DG-ECFIN), and the Organisation for Economic Co-operation and Development (OECD). In view of differences between the definition of NATO defence expenditure and national definitions, the figures shown in this report may diverge considerably from those which are quoted by media, published by national authorities or given in national budgets. Equipment expenditure includes expenditure on major equipment as well as on research and development devoted to major equipment. Personnel expenditure includes pensions paid to retirees. The cut-off date for information used in this report was 26 June 2017. Figures for 2017 are estimates.

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Graph 1 : NATO Europe and Canada - defence expenditure (annual real change, based on 2010 prices and exchange rates) % 5

4.3

4 3.3 3 1.8

2 1 0 -1

-1.0 -1.6

-2 -2.1 -3

-2.4

-2.5

2011

2012

-4 -5 2010

2013

2014

2015

2016

2017e

Cumulative spending increase for the period from 2015 to 2017, above 2014 level: +45.8 Bn USD

Equipment expenditure as % of defence expenditure

50

%

Graph 2 : Defence expenditure as a share of GDP versus equipment expenditure as a share of defence expenditure 2017e ROU

45 Median 1.31%

NATO guideline 2%

40 35

LUX TUR**

30

LTU

BGR* NOR FRA

25 SVK

ITA

LVA

20 ESP

15

DNK CAN NLD ALB

HUN

10 BEL

5

USA POL GBR EST

NATO guideline 20% Median 19.37%

GRC

DEU CZE PRT SVN

HRV

MNE

0 0.0

0.5

1.0

1.5 2.0 2.5 Defence expenditure as % of GDP

3.0

3.5

% 4.0

Notes: Figures for 2017 are estimates. The NATO Europe and Canada aggregate from 2017 includes Montenegro, which became an Ally on 5 June 2017. * Defence expenditure does not include pensions. ** In December 2016, Turkey fundamentally changed the calculation methodology of GDP (to bring it in line with the European System of Accounts (ESA) 2010), resulting in significant increases from 2011. If one uses the previous methodology, then the corresponding percentage for 2017 is 1.86%.

-2-

Graph 3 : Defence expenditure as a share of GDP (%) (based on 2010 prices and exchange rates)

% 4.5 4.0 3.58

3.5 3.0 2.5

2.32

2.14

2.14

2.0

NATO guideline 2%

2.02 2.01 1.79 1.77 1.70 1.66 1.59 1.57

1.5

1.52 1.32 1.31

1.0

1.27 1.22 1.22 1.19 1.17 1.17 1.13 1.07 1.05 1.02 0.92 0.91 0.44

0.5 0.0

2014

2017e

Graph 4 : Equipment expenditure as a share of defence expenditure (%) (based on 2010 prices and exchange rates)

% 50 46.49

45 40 35 30

32.99 31.09 30.40

29.54 28.55 25.65

25 20

24.17

22.50 22.03 20.94 20.29 20.16 19.42 19.31 19.27 19.25 17.33 16.80

15

NATO guideline 20% 15.44

14.08 13.29 12.90 10.31 9.07

10

8.20

6.09 5.30

5 0

2014

2017e

Notes: Figures for 2017 are estimates. * Defence expenditure does not include pensions. ** In December 2016, Turkey fundamentally changed the calculation methodology of GDP (to bring it in line with the European System of Accounts (ESA) 2010), resulting in significant increases from 2011. If one uses the previous methodology, then the corresponding percentages for 2014 and 2017 are 1.70% and 1.86%, respectively.

-3-

Graph 5 : Defence expenditure as a share of GDP (%) (based on 2010 prices and exchange rates) % 7 6 5.29

United States

5

4

3.58

NATO Total 3.29

3 2.43 2.01

2

NATO guideline 2%

1.46 NATO Europe and Canada

1

2017e

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

1989

0

Graph 6 : NATO Europe and Canada - defence expenditure (billion US dollars, based on 2010 prices and exchange rates) 350 + BGR, EST, LVA, LTU, ROU, SVK, SVN

325

+ MNE

+ ALB, HRV

+ CZE, HUN, POL

300

275 NATO Europe and Canada 250

225

Notes: Includes enlargements which took place in: 1999 (3 Allies), 2004 (7 Allies), 2009 (2 Allies) and 2017 (1 Ally). Figures for 2017 are estimates.

-4-

2017e

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

1989

200

Graph 7 : Defence expenditure (billion US dollars, based on 2010 prices and exchange rates) 1,200

1,014

1,012 965

1,000

920

895

915

277

286

299

611

594

608

616

2014

2015

2016

2017e

883

871

272

645

2013

286

293

279

800

275

600

400

726

720

686

200

0

2010

2011

2012

United States

NATO Europe and Canada

Graph 8 : Defence expenditure as a share of GDP (%) (based on 2010 prices and exchange rates) 5.5 5.0

4.81

4.77 4.42

4.5

4.08 3.78

4.0

3.58

3.61

3.58

3.5 3.0 2.5 2.0 1.59

1.52

1.48

1.45

1.41

1.40

1.43

1.46

2011

2012

2013

2014

2015

2016

2017e

1.5 1.0 0.5 0.0

2010

United States

NATO Europe and Canada

Notes: Figures for 2017 are estimates. The NATO Europe and Canada aggregate from 2017 includes Montenegro, which became an Ally on 5 June 2017.

-5-

Table 1 : Defence expenditure National currency units, million

2010

2011

2012

2013

2014

2015

2016

2017e

19,321 3,960 1,230 19,255 5,057 50,808 25,328 251 39,241 34,925 5,966 280,895 21,637 189 246 187 56 8,472 39,279 25,608 2,673 6,630 859 583 11,132 21,241 39,053 720,423

19,877 3,956 1,066 21,808 5,323 43,131 24,259 280 38,443 34,630 4,934 295,967 21,741 206 248 167 57 8,156 40,534 26,979 2,627 7,255 766 479 10,059 22,807 39,204 740,744

19,820 4,023 1,099 19,978 5,059 42,780 25,618 340 39,105 36,168 4,384 297,650 20,600 193 252 167 53 8,067 41,560 28,365 2,366 7,282 794 423 10,828 24,956 36,563 712,947

19,022 3,964 1,196 18,764 4,848 42,035 23,682 361 39,402 34,593 3,999 286,341 20,078 212 267 176 49 7,702 43,518 28,467 2,457 8,160 729 382 9,495 27,466 39,824 680,856

18,788 3,913 1,102 20,076 4,625 41,003 22,769 386 39,149 34,749 3,939 281,402 18,427 221 322 190 52 7,788 46,234 31,874 2,263 9,014 752 366 9,508 29,727 39,902 653,942

16,671 3,789 1,116 23,919 4,586 47,264 22,633 418 39,199 35,898 4,073 316,338 17,642 254 425 225 51 7,816 46,900 39,940 2,384 10,337 889 361 10,000 32,522 38,940 641,253

16,250 3,901 1,186 24,085 4,241 45,598 24,190 450 39,950 37,598 4,190 362,798 20,226 360 575 213 56 8,234 50,937 37,082 2,364 10,738 907 406 9,014 38,141 42,189 664,058

19,352 3,965 1,508 27,607 4,553 52,465 25,165 478 40,852 39,509 4,213 389,483 20,787 448 724 256 66 8,686 54,306 39,193 2,512 16,322 1,004 426 10,739 44,240 43,002 683,414

19,321 3,960 1,230 19,255 5,057 50,808 25,328 251 39,241 34,925 5,966 280,895 21,637 189 246 187 56 8,472 39,279 25,608 2,673 6,630 859 583 11,132 21,241 39,053 720,423

19,427 3,878 1,006 21,123 5,235 43,122 23,604 266 38,084 34,263 4,894 289,566 20,949 194 235 159 57 8,057 39,465 26,135 2,634 6,927 754 474 10,056 21,012 38,431 725,768

19,172 3,864 1,021 19,117 4,898 42,156 24,340 313 38,297 35,242 4,365 281,604 19,521 175 233 155 52 7,827 39,622 26,847 2,382 6,641 771 417 10,817 21,395 35,299 686,226

18,347 3,764 1,119 17,676 4,657 40,837 22,314 320 38,290 33,058 4,078 263,171 18,526 189 244 161 48 7,359 40,244 26,865 2,418 7,196 705 373 9,452 22,246 37,729 644,803

17,865 3,691 1,026 18,559 4,440 38,870 21,339 337 37,825 32,609 4,092 250,222 16,709 195 291 172 50 7,374 41,985 29,933 2,211 7,818 728 355 9,490 22,371 37,191 611,159

15,806 3,543 1,017 22,286 4,399 44,361 21,115 360 37,465 33,037 4,276 276,498 15,735 222 383 202 48 7,393 41,299 37,226 2,282 8,755 863 347 9,931 22,662 36,096 593,577

15,446 3,592 1,069 22,306 4,073 42,344 22,522 381 38,036 34,109 4,395 314,010 17,610 313 512 192 52 7,721 44,006 34,494 2,227 8,902 884 388 8,925 24,720 38,440 608,377

17,874 3,575 1,346 25,041 4,313 48,035 23,140 390 38,558 35,515 4,319 331,325 17,906 383 627 227 60 8,011 45,790 35,938 2,340 13,329 969 402 10,483 26,368 38,334 616,029

Current prices Albania (Leks) Belgium (Euros) Bulgaria* (Leva) Canada (Canadian dollars) Croatia (Kunas) Czech Republic (Koruny) Denmark (Kroner) Estonia (Euros) France (Euros) Germany (Euros) Greece (Euros) Hungary (Forint) Italy (Euros) Latvia (Euros) Lithuania (Euros) Luxembourg (Euros) Montenegro (Euros) Netherlands (Euros) Norway (Kroner) Poland (Zlotys) Portugal (Euros) Romania (New Lei) Slovak Republic (Euros) Slovenia (Euros) Spain (Euros) Turkey (Liras) United Kingdom (Pounds) United States (US dollars)

Constant 2010 prices Albania (Leks) Belgium (Euros) Bulgaria* (Leva) Canada (Canadian dollars) Croatia (Kunas) Czech Republic (Koruny) Denmark (Kroner) Estonia (Euros) France (Euros) Germany (Euros) Greece (Euros) Hungary (Forint) Italy (Euros) Latvia (Euros) Lithuania (Euros) Luxembourg (Euros) Montenegro (Euros) Netherlands (Euros) Norway (Kroner) Poland (Zlotys) Portugal (Euros) Romania (New Lei) Slovak Republic (Euros) Slovenia (Euros) Spain (Euros) Turkey (Liras) United Kingdom (Pounds) United States (US dollars) * Data do not include pensions.

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Table 2 : Defence expenditure Million US dollars

2010

2011

2012

2013

2014

2015

2016

2017e

274,592

281,683

263,654

269,441

270,202

235,121

237,883

| 242,234

186 5,245 832 920 2,660 4,504 332 51,971 46,255 7,902 1,351 28,656 251 326 248 74 11,220 6,499 8,493 3,540 2,086 1,138 772 14,743 14,134 60,329

197 5,500 758 996 2,437 4,518 389 53,441 48,140 6,858 1,472 30,223 286 344 232 80 11,339 7,232 9,106 3,652 2,380 1,065 666 13,984 13,616 62,852

183 5,169 722 865 2,185 4,423 437 50,245 46,470 5,633 1,322 26,468 248 324 214 68 10,365 7,143 8,710 3,040 2,100 1,020 543 13,912 13,895 58,016

180 5,264 811 850 2,148 4,216 480 52,316 45,932 5,310 1,280 26,658 281 355 234 65 10,226 7,407 9,007 3,262 2,452 968 507 12,607 14,427 62,263

178 5,192 747 805 1,975 4,056 513 51,940 46,102 5,226 1,210 24,448 293 427 253 69 10,332 7,336 10,104 3,003 2,692 997 486 12,614 13,583 65,690

132 4,202 633 669 1,921 3,364 463 43,474 39,813 4,517 1,132 19,566 281 471 249 57 8,668 5,816 10,596 2,644 2,581 986 401 11,090 11,957 59,492

131 4,315 671 623 1,866 3,593 497 44,191 41,590 4,635 1,289 22,373 398 636 236 62 9,108 6,064 9,405 2,615 2,633 1,003 449 9,971 12,629 56,964

152 4,303 821 651 2,119 3,667 519 44,333 42,875 4,572 1,355 22,558 487 785 278 72 9,426 6,309 9,997 2,726 3,844 1,090 462 11,655 12,315 54,863

North America

739,113

762,784

732,941

699,077

672,092

659,953

682,230

703,729

Canada United States

18,690 720,423

22,040 740,744

19,994 712,947

18,221 680,856

18,150 653,942

18,700 641,253

18,172 664,058

20,315 683,414

1,013,705

1,044,467

996,595

968,518

942,294

895,074

920,114

| 945,962

274,592

265,810

260,703

257,595

254,115

255,507

264,680

| 274,458

186 5,245 832 920 2,660 4,504 332 51,971 46,255 7,902 1,351 28,656 251 326 248 74 11,220 6,499 8,493 3,540 2,086 1,138 772 14,743 14,134 60,329

187 5,137 681 952 2,258 4,197 352 50,439 45,378 6,482 1,393 27,746 256 312 211 75 10,670 6,530 8,667 3,489 2,180 999 627 13,319 13,982 59,368

184 5,118 691 891 2,207 4,328 415 50,721 46,675 5,782 1,354 25,853 232 309 206 69 10,367 6,556 8,904 3,155 2,090 1,022 552 14,327 14,237 54,530

177 4,985 757 847 2,138 3,968 424 50,711 43,783 5,401 1,266 24,536 251 323 214 63 9,747 6,659 8,910 3,203 2,264 934 494 12,519 14,803 58,283

172 4,889 695 808 2,035 3,794 446 50,096 43,188 5,420 1,203 22,130 258 385 227 66 9,766 6,947 9,927 2,929 2,460 964 471 12,569 14,886 57,451

152 4,693 689 800 2,323 3,754 477 49,619 43,755 5,664 1,330 20,840 295 507 267 64 9,791 6,833 12,346 3,022 2,755 1,143 460 13,153 15,080 55,760

149 4,757 723 741 2,217 4,005 505 50,376 45,175 5,821 1,510 23,323 415 678 255 69 10,225 7,281 11,440 2,949 2,801 1,170 514 11,820 16,449 59,381

172 4,735 911 785 2,515 4,115 516 51,067 47,036 5,720 1,593 23,715 507 830 301 80 10,610 7,576 11,919 3,099 4,194 1,283 533 13,884 17,546 59,218

North America

739,113

746,272

704,783

661,961

629,175

615,210

630,029

640,336

Canada United States

18,690 720,423

20,504 725,768

18,557 686,226

17,158 644,803

18,015 611,159

21,633 593,577

21,652 608,377

24,307 616,029

1,013,705

1,012,082

965,485

919,556

883,290

870,717

894,709

| 914,795

Current prices and exchange rates NATO Europe Albania Belgium Bulgaria * Croatia Czech Republic Denmark Estonia France Germany Greece Hungary Italy Latvia Lithuania Luxembourg Montenegro Netherlands Norway Poland Portugal Romania Slovak Republic Slovenia Spain Turkey United Kingdom

NATO Total

Constant 2010 prices and exchange rates NATO Europe Albania Belgium Bulgaria * Croatia Czech Republic Denmark Estonia France Germany Greece Hungary Italy Latvia Lithuania Luxembourg Montenegro Netherlands Norway Poland Portugal Romania Slovak Republic Slovenia Spain Turkey United Kingdom

NATO Total

Notes: Figures for 2017 are estimates. The NATO Europe and NATO Total aggregates from 2017 include Montenegro, which became an Ally on 5 June 2017. * Defence expenditure does not include pensions.

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Table 3 : Defence expenditure as a share of GDP and annual real change Based on 2010 prices

2010

2011

2012

2013

2014

2015

2016

2017e

1.63

1.55

1.52

1.49

1.45

1.43

1.45

| 1.47

1.56 1.08 1.64 1.54 1.29 1.40 1.70 1.96 1.35 2.64 1.04 1.35 1.06 0.88 0.47 1.80 1.34 1.52 1.77 1.49 1.24 1.27 1.61 1.03 1.83 2.48

1.53 1.04 1.32 1.60 1.07 1.29 1.68 1.87 1.28 2.38 1.05 1.30 1.01 0.79 0.39 1.75 1.25 1.51 1.72 1.49 1.28 1.09 1.30 0.94 1.64 2.41

1.49 1.04 1.34 1.53 1.05 1.32 1.90 1.87 1.31 2.29 1.04 1.24 0.88 0.76 0.38 1.66 1.23 1.47 1.74 1.41 1.22 1.09 1.17 1.04 1.59 2.18

1.41 1.01 1.46 1.47 1.03 1.20 1.91 1.86 1.22 2.21 0.95 1.20 0.93 0.76 0.38 1.47 1.16 1.48 1.72 1.44 1.28 0.98 1.06 0.93 1.52 2.29

1.35 0.98 1.32 1.41 0.95 1.13 1.96 1.82 1.19 2.21 0.87 1.08 0.94 0.88 0.38 1.50 1.15 1.52 1.85 1.31 1.35 0.99 0.98 0.92 1.45 2.19

1.16 0.92 1.26 1.37 1.04 1.10 2.06 1.79 1.18 2.32 0.93 1.01 1.04 1.14 0.43 1.42 1.13 1.47 2.22 1.33 1.45 1.13 0.94 0.93 1.39 2.08

1.10 0.93 1.28 1.24 0.97 1.16 2.15 1.79 1.20 2.38 1.04 1.12 1.44 1.49 0.39 1.49 1.15 1.55 2.00 1.28 1.41 1.12 1.02 0.81 1.47 2.18

1.22 0.91 1.57 1.27 1.07 1.17 2.14 1.79 1.22 2.32 1.05 1.13 1.70 1.77 0.44 1.66 1.17 1.59 2.01 1.32 2.02 1.19 1.02 0.92 1.52 2.14

North America

4.46

4.42

4.09

3.77

3.50

3.34

3.37

3.36

Canada United States

1.16 4.81

1.23 4.77

1.10 4.42

0.99 4.08

1.01 3.78

1.20 3.58

1.19 3.61

1.31 3.58

3.04

2.97

2.81

2.64

2.49

2.40

2.42

| 2.43

-1.15

-3.20

-1.92

-1.19

-1.35

0.55

3.59

| 3.69

6.54 -3.70 -4.47 -6.38 -13.58 6.53 -3.09 -0.94 1.44 -18.94 -8.06 -3.73 -15.80 -16.85 24.44 4.62 -4.22 -1.08 8.00 -1.35 -7.31 -12.02 2.38 -8.87 1.53 2.95

0.55 -2.07 -18.22 3.53 -15.13 -6.81 6.11 -2.95 -1.90 -17.97 3.09 -3.18 2.27 -4.31 -15.12 0.63 -4.90 0.47 2.06 -1.45 4.48 -12.23 -18.77 -9.66 -1.08 -1.59

-1.32 -0.37 1.54 -6.44 -2.24 3.12 17.69 0.56 2.86 -10.81 -2.75 -6.82 -9.56 -0.89 -2.30 -8.11 -2.84 0.40 2.73 -9.56 -4.13 2.31 -11.91 7.57 1.82 -8.15

-4.30 -2.59 9.53 -4.93 -3.13 -8.32 2.37 -0.02 -6.20 -6.59 -6.55 -5.09 8.15 4.60 3.91 -8.44 -5.98 1.57 0.07 1.51 8.36 -8.63 -10.54 -12.62 3.98 6.88

-2.62 -1.94 -8.28 -4.65 -4.82 -4.37 5.13 -1.21 -1.36 0.35 -4.92 -9.81 2.76 19.18 6.44 4.49 0.19 4.32 11.42 -8.56 8.63 3.23 -4.75 0.40 0.56 -1.43

-11.53 -4.01 -0.84 -0.93 14.13 -1.05 6.96 -0.95 1.31 4.51 10.50 -5.83 14.33 31.73 17.31 -2.71 0.26 -1.63 24.37 3.18 11.99 18.61 -2.34 4.65 1.30 -2.94

-2.28 1.37 5.05 -7.41 -4.55 6.67 5.85 1.53 3.25 2.77 13.57 11.91 40.78 33.65 -4.57 7.95 4.43 6.55 -7.34 -2.40 1.68 2.38 11.72 -10.13 9.08 6.49

15.72 -0.46 25.94 5.91 13.44 2.74 2.19 1.37 4.12 -1.74 5.51 1.68 22.26 22.39 18.00 15.03 3.76 4.05 4.19 5.08 49.73 9.64 3.74 17.46 6.67 -0.28

North America

-6.89

0.97

-5.56

-6.08

-4.95

-2.22

2.41

1.64

Canada United States

-14.25 -6.68

9.71 0.74

-9.50 -5.45

-7.54 -6.04

5.00 -5.22

20.08 -2.88

0.09 2.49

12.26 1.26

-5.40

-0.16

-4.60

-4.76

-3.94

-1.42

2.76

| 2.25

Share of real GDP (%) NATO Europe Albania Belgium Bulgaria * Croatia Czech Republic Denmark Estonia France Germany Greece Hungary Italy Latvia Lithuania Luxembourg Montenegro Netherlands Norway Poland Portugal Romania Slovak Republic Slovenia Spain Turkey ** United Kingdom

NATO Total

Annual real change (%) NATO Europe Albania Belgium Bulgaria * Croatia Czech Republic Denmark Estonia France Germany Greece Hungary Italy Latvia Lithuania Luxembourg Montenegro Netherlands Norway Poland Portugal Romania Slovak Republic Slovenia Spain Turkey United Kingdom

NATO Total

Notes: Figures for 2017 are estimates. The NATO Europe and NATO Total aggregates from 2017 include Montenegro, which became an Ally on 5 June 2017. * Defence expenditure does not include pensions. ** In December 2016, Turkey fundamentally changed the calculation methodology of GDP (to bring it in line with the European System of Accounts (ESA) 2010), resulting in significant increases from 2011. If one uses the previous methodology, then the corresponding percentages from 2010 to 2017 are 1.93%, 1.76%, 1.76%, 1.75%, 1.70%, 1.67%, 1.78% and 1.86%, respectively.

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Table 4 : GDP 2010 prices and exchange rates

2010

2011

2012

2013

2014

2015

2016

2017e

16,821

17,161

17,137

17,254

17,566

17,930

18,261

| 18,623

12 484 51 60 207 322 19 2,647 3,417 299 130 13 2,125 24 37 53 4.1 836 429 479 238 168 90 48 1,432 772 2,429

12 492 52 59 211 326 21 2,702 3,542 272 133 14 2,137 25 39 55 4.3 850 433 503 234 170 92 48 1,417 855 2,466

12 493 52 58 209 327 22 2,707 3,560 252 130 14 2,077 26 41 54 4.2 841 445 511 225 171 94 47 1,376 895 2,498

13 493 52 58 208 330 22 2,722 3,577 244 133 14 2,041 27 42 57 4.3 840 449 519 222 177 95 47 1,352 975 2,546

13 501 53 57 214 336 23 2,748 3,634 245 139 15 2,043 28 44 60 4.4 852 458 536 224 182 97 48 1,371 1,024 2,624

13 508 55 58 224 341 23 2,778 3,697 244 143 15 2,059 28 45 62 4.5 868 465 556 228 190 101 49 1,415 1,084 2,682

14 514 57 60 229 345 24 2,811 3,766 244 146 16 2,078 29 46 65 4.6 887 470 571 231 199 104 50 1,461 1,117 2,730

14 523 58 62 236 351 24 2,846 3,840 247 151 17 2,097 30 47 68 4.8 908 476 592 236 207 108 52 1,501 1,156 2,773

North America

16,578

16,868

17,235

17,538

17,957

18,394

18,688

19,084

Canada United States

1,613 14,964

1,664 15,204

1,693 15,542

1,735 15,803

1,780 16,177

1,796 16,598

1,822 16,866

1,857 17,227

33,399

34,029

34,373

34,792

35,523

36,324

36,949

| 37,707

30.3

30.8

30.6

30.7

31.2

31.7

32.1

4.1 44.4 6.8 13.9 19.7 58.0 14.6 40.7 42.6 26.9 13.0 41.7 35.5 11.3 12.0 105.0 6.7 50.3 87.7 12.4 22.5 8.3 16.5 23.4 30.7 10.6 38.7

4.2 44.8 7.0 13.9 20.1 58.6 15.8 41.4 44.1 24.5 13.3 42.4 35.6 12.3 13.0 105.3 6.9 50.9 87.4 13.1 22.2 8.4 17.0 23.5 30.3 11.6 39.0

4.3 44.6 7.1 13.6 19.9 58.5 16.5 41.3 44.3 22.8 13.1 42.7 34.4 12.9 13.7 102.4 6.7 50.2 88.6 13.3 21.4 8.5 17.3 22.9 29.4 12.0 39.2

4.3 44.4 7.2 13.5 19.8 58.8 16.8 41.3 44.4 22.3 13.5 44.0 33.7 13.4 14.3 104.1 6.9 50.0 88.4 13.5 21.2 8.8 17.5 22.6 29.0 12.9 39.7

4.4 44.9 7.3 13.5 20.3 59.5 17.3 41.5 44.9 22.5 14.0 44.3 33.6 13.8 14.9 107.4 7.0 50.5 89.1 13.9 21.5 9.2 18.0 23.3 29.5 13.4 40.6

4.5 45.3 7.6 13.8 21.2 60.0 17.6 41.8 45.3 22.5 14.5 45.7 33.9 14.3 15.3 109.1 7.3 51.3 89.6 14.5 22.0 9.6 18.6 23.8 30.5 14.0 41.2

4.7 45.5 7.9 14.3 21.7 60.5 17.9 42.1 45.5 22.6 14.8 48.6 34.1 14.7 15.9 111.0 7.5 52.2 89.3 14.9 22.4 10.1 19.3 24.4 31.4 14.3 41.6

4.9 45.8 8.2 14.8 22.3 61.2 18.3 42.4 46.4 22.9 15.4 50.8 34.3 15.3 16.6 113.3 7.7 53.3 89.2 15.4 23.0 10.6 19.9 25.2 32.4 14.6 42.0

North America

48.2

48.7

49.4

49.8

50.6

51.4

51.9

52.6

Canada United States

47.4 48.3

48.5 48.7

48.7 49.4

49.4 49.9

50.1 50.7

50.1 51.6

50.3 52.0

50.8 52.8

37.1

37.6

37.8

38.1

38.7

39.3

39.8

Real GDP (billion US dollars) NATO Europe Albania Belgium Bulgaria Croatia Czech Republic Denmark Estonia France Germany Greece Hungary Iceland Italy Latvia Lithuania Luxembourg Montenegro Netherlands Norway Poland Portugal Romania Slovak Republic Slovenia Spain Turkey United Kingdom

NATO Total

GDP per capita (thousand US dollars) NATO Europe Albania Belgium Bulgaria Croatia Czech Republic Denmark Estonia France Germany Greece Hungary Iceland Italy Latvia Lithuania Luxembourg Montenegro Netherlands Norway Poland Portugal Romania Slovak Republic Slovenia Spain Turkey United Kingdom

NATO Total

Notes: Figures for 2017 are estimates. The NATO Europe and NATO Total aggregates from 2017 include Montenegro, which became an Ally on 5 June 2017.

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|

|

32.6

40.4

Table 5 : Defence expenditure per capita and military personnel

2010

2011

2012

2013

2014

2015

2016

2017e

494

477

466

459

451

452

465

64 482 113 214 253 812 249 800 576 711 135 479 120 105 489 120 675 1,329 220 335 103 210 377 317 194 961

64 468 93 222 215 753 265 772 565 584 140 462 125 103 406 121 639 1,318 225 330 108 185 306 285 189 938

64 463 95 209 210 774 313 773 580 523 137 428 114 103 387 111 619 1,306 231 300 104 189 269 306 190 856

61 449 104 199 203 707 321 769 543 493 128 405 125 109 393 102 580 1,311 231 306 113 172 240 269 195 909

59 438 96 190 193 672 339 756 533 498 122 364 129 131 409 106 579 1,352 258 282 124 178 228 271 194 889

53 419 96 190 220 661 363 746 536 522 135 343 149 175 469 103 578 1,316 321 292 139 211 223 283 195 856

51 421 101 177 210 702 384 754 546 538 154 383 212 236 437 111 602 1,384 298 286 142 216 249 254 210 906

60 415 128 189 238 718 392 761 569 530 163 388 261 294 503 128 623 1,421 310 302 214 237 258 299 222 897

North America

2,150

2,154

2,018

1,881

1,773

1,721

1,749

1,764

Canada United States

550 2,325

597 2,325

534 2,182

488 2,035

507 1,914

603 1,845

598 1,877

665 1,887

1,127

1,119

1,062

1,007

962

943

963

2,084

2,004

1,956

1,862

1,825

1,774

1,753

| 1,792

11 34 30 16 24 19 5.4 234 235 128 20 193 4.8 7.9 0.9 2.1 48 19 100 43 67 14 7.1 131 495 198

10 32 29 16 22 19 5.9 227 205 117 19 192 4.8 8.0 0.9 1.9 45 21 97 35 66 13 7.2 127 495 191

7.9 31 26 16 22 19 6.0 219 192 110 19 189 4.7 8.3 0.8 1.9 44 21 98 34 66 13 7.1 125 495 184

6.8 31 28 16 20 18 6.3 213 184 110 18 189 4.6 8.4 0.9 1.9 42 20 100 33 66 12 6.9 122 427 179

6.7 31 27 15 20 17 6.3 207 179 107 17 183 4.6 8.6 0.8 1.9 41 21 99 31 65 12 6.8 122 427 169

6.2 30 25 15 21 16 5.8 205 177 103 17 178 4.8 12 0.8 1.7 41 21 99 27 64 12 6.6 122 399 163

5.8 29 25 15 23 17 5.4 209 178 106 18 176 5.2 12 0.8 1.5 40 21 102 29 63 12 6.5 121 373 161

6.8 28 25 15 23 17 5.7 209 179 107 18 181 5.7 14 0.8 1.5 41 20 111 27 70 12 6.8 121 387 161

North America

1,488

1,493

1,467

1,450

1,404

1,387

1,375

1,381

Canada United States

61 1,427

68 1,425

68 1,400

68 1,382

66 1,338

73 1,314

73 1,301

73 1,308

3,572

3,497

3,423

3,312

3,229

3,161

3,128

| 3,174

Defence expenditure per capita (2010 US dollars) NATO Europe Albania Belgium Bulgaria * Croatia Czech Republic Denmark Estonia France Germany Greece Hungary Italy Latvia Lithuania Luxembourg Montenegro Netherlands Norway Poland Portugal Romania Slovak Republic Slovenia Spain Turkey United Kingdom

NATO Total

|

|

481

980

Military personnel (thousands) NATO Europe Albania Belgium Bulgaria Croatia Czech Republic Denmark Estonia France Germany Greece Hungary Italy Latvia Lithuania Luxembourg Montenegro Netherlands Norway Poland Portugal Romania Slovak Republic Slovenia Spain Turkey United Kingdom

NATO Total

Notes: Figures for 2017 are estimates. The NATO Europe and NATO Total aggregates from 2017 include Montenegro, which became an Ally on 5 June 2017. * Defence expenditure does not include pensions.

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Table 6a : Distribution of defence expenditure by main category Per cent of total defence expenditure

2010

2011

2012

2013

2014

2015

2016

2017e

15.69 6.79 15.41 13.81 8.12 12.42 14.10 11.88 30.20 17.59 17.98 12.10 10.92 15.62 10.00 34.45 3.66 15.70 18.13 18.13 13.20 8.80 9.81 18.00 12.10 27.98 24.47 24.02

13.36 6.27 6.33 9.67 15.79 13.30 9.68 10.11 28.17 16.41 5.86 12.29 11.74 10.78 9.38 21.86 1.73 14.43 17.04 16.13 12.07 7.57 7.15 5.70 6.74 24.57 22.01 26.99

14.44 3.57 3.68 8.31 14.72 14.78 9.03 13.69 30.58 16.45 7.47 5.84 8.87 10.45 11.20 17.11 4.44 13.41 17.76 15.16 9.34 4.14 9.56 1.20 22.86 21.21 19.54 26.97

16.29 2.84 4.52 11.16 10.72 9.49 11.26 14.48 24.53 12.74 12.06 11.08 12.51 12.09 9.23 14.57 1.32 12.57 18.89 13.90 8.65 10.71 7.39 1.27 12.37 26.89 21.89 25.83

16.65 3.52 1.03 13.03 7.35 6.53 10.99 22.15 24.64 12.94 8.17 7.76 10.92 7.55 14.06 22.61 7.46 10.68 21.17 18.84 8.43 15.77 11.12 0.66 13.49 25.08 22.82 25.97

8.92 3.44 3.47 10.46 10.58 11.76 11.50 12.82 25.04 11.93 10.26 9.75 9.72 13.60 21.55 33.33 5.43 11.16 22.49 33.20 8.70 19.65 18.28 1.85 14.82 25.13 21.75 25.41

8.01 4.66 9.15 10.84 10.09 6.70 13.68 17.86 24.44 12.21 13.43 13.37 19.09 19.28 30.06 30.07 4.46 14.14 24.05 21.70 9.95 20.43 15.31 1.02 6.65 25.59 21.56 25.03

17.33 5.30 29.54 19.42 9.07 12.90 19.25 19.27 24.17 14.08 15.44 13.29 20.94 20.29 31.09 32.99 8.20 16.80 25.65 22.50 10.31 46.49 20.16 6.09 19.31 30.40 22.03 28.55

75.66 75.54 64.30 45.30 71.56 50.66 50.81 34.51 47.64 52.66 65.07 56.35 75.08 55.91 65.60 45.63 73.63 52.28 42.69 56.79 70.18 79.07 62.39 61.69 63.38 49.75 35.65 46.70

77.07 75.88 67.36 47.11 67.17 56.28 52.22 32.28 49.35 52.29 76.03 50.64 74.78 51.31 66.87 52.29 82.88 54.66 43.43 57.80 78.30 79.11 69.47 74.63 64.81 53.02 37.55 33.01

69.97 78.52 64.71 49.10 68.13 61.66 49.05 29.75 49.11 50.60 73.19 47.69 77.05 56.15 66.78 54.23 82.68 57.54 42.38 57.34 78.39 84.00 66.53 78.91 57.19 56.02 38.90 32.12

75.25 77.34 65.37 52.44 68.06 62.03 51.74 39.83 49.23 49.86 74.56 48.96 75.00 52.98 66.53 51.10 87.68 58.53 41.02 57.70 79.85 78.99 70.14 80.52 68.25 54.58 37.85 34.38

68.05 77.84 72.84 50.90 69.25 61.40 51.27 38.62 48.59 50.67 77.18 49.77 76.41 52.97 57.53 49.31 78.53 56.50 39.36 51.45 81.27 71.15 69.14 82.31 67.34 56.88 36.59 35.45

78.15 78.23 73.66 53.71 63.64 55.27 52.01 39.56 47.79 49.86 72.05 48.21 77.55 50.06 48.49 42.77 78.03 55.51 38.70 41.96 81.90 63.30 56.24 82.23 65.18 56.82 36.80 36.64

68.05 77.11 65.64 52.68 67.13 61.97 49.51 38.70 47.94 48.35 73.13 49.66 70.79 43.18 45.50 45.56 75.32 51.77 37.28 46.76 81.38 65.01 58.72 76.03 72.61 57.69 34.63 36.68

62.08 76.07 54.62 47.15 62.77 58.27 49.61 34.98 47.98 47.24 72.19 43.86 66.41 40.42 42.40 38.85 72.78 50.97 34.96 47.73 78.03 43.55 55.03 70.72 61.50 53.28 34.05 35.87

Equipment (a) Albania Belgium Bulgaria * Canada Croatia Czech Republic Denmark Estonia France Germany Greece Hungary Italy Latvia Lithuania Luxembourg Montenegro Netherlands Norway Poland Portugal Romania Slovak Republic Slovenia Spain Turkey United Kingdom United States

Personnel (b) Albania Belgium Bulgaria * Canada Croatia Czech Republic Denmark Estonia France Germany Greece Hungary Italy Latvia Lithuania Luxembourg Montenegro Netherlands Norway Poland Portugal Romania Slovak Republic Slovenia Spain Turkey United Kingdom United States

* Defence expenditure does not include pensions. (a) Equipment expenditure includes major equipment expenditure and R&D devoted to major equipment. (b) Personnel expenditure includes military and civilian expenditure and pensions.

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Table 6b : Distribution of defence expenditure by main category Per cent of total defence expenditure

2010

2011

2012

2013

2014

2015

2016

2017e

1.81 1.75 2.39 4.11 1.42 5.79 1.07 13.73 3.13 5.16 0.76 2.07 1.40 5.78 1.97 4.16 5.87 3.47 5.24 3.96 0.43 1.81 4.22 2.67 1.25 2.84 1.62 0.97

0.78 1.69 1.53 5.48 0.71 2.51 1.45 13.57 2.68 4.13 1.26 1.31 1.31 9.29 1.37 7.18 2.50 3.77 4.22 4.80 0.01 1.47 1.01 2.61 1.88 2.91 1.64 3.14

0.64 1.59 0.76 5.47 0.57 1.61 1.24 8.85 3.42 3.53 0.79 2.11 1.02 4.16 1.47 8.20 0.03 3.70 4.86 4.76 0.04 1.19 0.37 2.02 0.85 3.70 1.91 2.38

1.17 2.28 0.47 4.12 1.21 2.72 1.16 11.54 2.21 3.55 0.63 2.32 1.57 6.26 2.04 11.81 0.09 2.74 5.64 5.62 0.04 1.16 0.29 1.33 0.67 2.72 2.04 2.08

0.86 1.81 0.63 3.81 1.63 2.34 0.97 8.20 2.33 3.75 1.10 1.07 1.40 8.89 2.17 10.26 0.96 4.77 6.00 5.47 0.11 1.09 0.57 0.65 0.66 2.77 1.95 1.71

1.40 0.93 1.27 3.63 2.62 3.32 1.09 8.45 2.80 3.60 0.79 1.21 1.30 6.64 2.16 7.79 2.47 3.19 5.60 4.74 0.25 1.27 1.99 0.61 0.97 2.56 1.63 1.45

1.37 0.95 0.63 3.39 1.70 3.91 2.16 12.15 2.70 3.39 0.60 1.13 0.70 12.98 3.59 6.64 2.41 3.90 6.96 4.91 0.06 2.77 3.75 1.14 0.97 2.42 1.96 1.43

1.52 1.31 0.50 3.61 3.09 3.69 2.91 11.25 2.88 3.48 0.40 1.27 1.29 13.56 5.20 6.35 1.25 3.34 7.83 5.15 0.01 2.26 3.87 2.19 0.91 2.00 1.95 1.22

6.83 15.93 17.91 36.77 18.91 31.13 34.02 39.89 19.03 24.58 16.19 29.47 12.60 22.69 22.43 15.76 16.84 28.55 33.93 21.12 16.19 10.32 23.58 17.63 23.26 19.43 38.26 28.30

8.79 16.15 24.78 37.75 16.33 27.91 36.65 44.04 19.80 27.17 16.84 35.76 12.17 28.62 22.39 18.67 12.89 27.14 35.31 21.27 9.62 11.85 22.38 17.05 26.58 19.49 38.80 36.86

14.95 16.31 30.85 37.12 16.58 21.95 40.68 47.71 16.89 29.42 18.55 44.35 13.06 29.23 20.56 20.46 12.85 25.34 35.00 22.73 12.22 10.68 23.55 17.87 19.11 19.07 39.64 38.53

7.30 17.53 29.64 32.28 20.01 25.75 35.84 34.14 24.03 33.84 12.75 37.64 10.93 28.68 22.20 22.52 10.91 26.16 34.45 22.78 11.46 9.13 22.19 16.88 18.71 15.80 38.22 37.72

14.44 16.83 25.51 32.26 21.78 29.73 36.78 31.03 24.43 32.63 13.55 41.40 11.27 30.59 26.24 17.82 13.06 28.05 33.46 24.24 10.19 11.98 19.16 16.38 18.50 15.27 38.63 36.87

11.53 17.40 21.60 32.19 23.16 29.65 35.40 39.18 24.37 34.61 16.90 40.83 11.42 29.69 27.79 16.11 14.07 30.14 33.21 20.11 9.15 15.78 23.49 15.31 19.03 15.49 39.82 36.51

22.57 17.28 24.57 33.09 21.08 27.43 34.65 31.30 24.92 36.05 12.84 35.84 9.42 24.55 20.85 17.73 17.80 30.20 31.71 26.64 8.61 11.79 22.23 21.80 19.78 14.30 41.85 36.86

19.07 17.32 15.35 29.82 25.06 25.15 28.23 34.50 24.97 35.21 11.97 41.58 11.37 25.73 21.31 21.81 17.76 28.90 31.55 24.61 11.65 7.70 20.94 21.00 18.28 14.31 41.97 34.36

Infrastructure (a) Albania Belgium Bulgaria * Canada Croatia Czech Republic Denmark Estonia France Germany Greece Hungary Italy Latvia Lithuania Luxembourg Montenegro Netherlands Norway Poland Portugal Romania Slovak Republic Slovenia Spain Turkey United Kingdom United States

Other (b) Albania Belgium Bulgaria * Canada Croatia Czech Republic Denmark Estonia France Germany Greece Hungary Italy Latvia Lithuania Luxembourg Montenegro Netherlands Norway Poland Portugal Romania Slovak Republic Slovenia Spain Turkey United Kingdom United States

* Defence expenditure does not include pensions. (a) Infrastructure expenditure includes NATO common infrastructure and national military construction. (b) Other expenditure includes operations and maintenance expenditure, other R&D expenditure and expenditure not allocated among above-mentioned categories.

-12-

NATO defence expenditure NATO defines defence expenditure as payments made by a national government specifically to meet the needs of its armed forces or those of Allies. A major component of defence expenditure is payments on Armed Forces financed within the Ministry of Defence (MoD) budget. Armed Forces include Land, Maritime and Air forces as well as Joint formations such as Administration and Command, Special Operations Forces, Medical Service, Logistic Command etc. They might also include "Other Forces" like Ministry of Interior troops, border guards, national police forces, customs, gendarmerie, carabinieri, coast guards etc. In such cases, expenditure should be included only in proportion to the forces that are trained in military tactics, are equipped as a military force, can operate under direct military authority in deployed operations, and can, realistically, be deployed outside national territory in support of a military force. Also, expenditure on Other Forces financed through the budgets of ministries other than MoD should be included in defence expenditure.

Financial assistance by one Ally to another, specifically to support the defence effort of the recipient, should be included in the defence expenditure of the donor nation and not in the defence expenditure of the receiving nation. Expenditure on NATO Common infrastructure is included in the total defence expenditure of each Ally only to the extent of that nation's net contribution. War damage payments, payments and benefits to veterans, and spending on civil defence are excluded from the NATO definition of defence expenditure. NATO uses United States dollars (USD) as the common currency denominator. The exchange rate applied to each Ally is the average annual rate published by the International Monetary Fund (IMF) and estimates from the OECD for the current year. The values for defence expenditure are expressed in current prices; constant prices; current prices and exchange rates; as well as constant prices and exchange rates.

Pension payments made directly by the government to retired military and civilian employees of military departments should be included regardless of whether these payments are made from the budget of the MoD or other ministries.

Note to readers: Iceland has no armed forces. For nations of the Euro zone, and Montenegro, monetary values in national currency are expressed in Euros for all years. Estonia adopted Euros from 2011, Latvia from 2014, and Lithuania from 2015.

Expenditure for peacekeeping and humanitarian operations (paid by MoD or other ministries), the destruction of weapons, equipment and ammunition, and the costs associated with inspection and control of equipment destruction are included in defence expenditure.

To avoid any ambiguity, the fiscal year has been designated by the year which includes the highest number of months: e.g. 2016 represents the fiscal year 2016/2017 for Canada and United Kingdom and the fiscal year 2015/2016 for the United States. Because of rounding, the total figures may differ from the sum of their components.

Research and development (R&D) costs are to be included in defence expenditure. R&D costs should also include those for projects that do not successfully lead to production of equipment.

Conventional signs: e .. | .

Expenditure for the military component of mixed civilian-military activities is included, but only when this military component can be specifically accounted for or estimated.

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estimated nil not available break in continuity of series decimal point

Nomenclature of NATO defence expenditure: 1 1.1 1.1.1 1.1.2 1.1.3 1.2 1.2.1 1.2.2 1.3 1.3.1 1.3.2 1.4 1.4.1 1.4.2 1.4.3 1.4.4 1.4.5 1.4.6 2 2.1 2.1.1 2.1.2 2.1.3 2.1.4 2.1.5 2.1.6 2.1.7 2.1.8 2.1.9 2.1.10 2.1.11 2.2 2.3 2.3.1 2.3.2 2.3.3 2.3.4 3 3.1 3.2 4 5 6 7

Operating costs Military personnel Pay and allowances Employer's contributions to retirement funds Other Civilian personnel Pay and allowances Employer's contributions to retirement funds Pensions Paid to military retirees Paid to civilian retirees Operations and maintenance Ammunition and explosives (excluding nuclear) Petroleum products Spare parts Other equipment and supplies Rents Other operations and maintenance Procurement and construction Major equipment Missile systems Missiles (conventional weapons) Nuclear weapons Aircraft Artillery Combat vehicles Engineering equipment Weapons and small arms Transport vehicles Ships and harbour craft Electronic and communications equipment National military construction NATO common infrastructure Expenditure as host nation Payments to other nations Receipts from other nations Land and utilities Research and development Devoted to major equipment Other Other expenditure Total Statistical discrepancy Adjusted total

Main categories of defence expenditure: - Equipment (Table 6a) – lines 2.1 + 3.1 - Personnel (Table 6a) – lines 1.1 + 1.2 + 1.3 - Infrastructure (Table 6b) – lines 2.2 + 2.3 - Other (Table 6b) – lines 1.4 + 3.2 + 4 -14-