Defence Expenditure Of NATO Countries (2013 2019
29 November/Novembre 2019COMMUNIQUEPR/CP(2019)123Defence Expenditure of NATO Countries (2013-2019)NATO collects defence expenditure data from Allies on a regular basis and presentsaggregates and subsets of this information. Each Ally’s Ministry of Defence reportscurrent and estimated future defence expenditure according to an agreed definition ofdefence expenditure. The amounts represent payments by a national government actuallymade, or to be made, during the course of the fiscal year to meet the needs of its armedforces, those of Allies or of the Alliance. In the figures and tables that follow, NATO alsouses economic and demographic information available from the Directorate-General forEconomic and Financial Affairs of the European Commission (DG-ECFIN), and theOrganisation for Economic Co-operation and Development (OECD).In view of differences between both these sources and national GDP forecasts, and alsothe definition of NATO defence expenditure and national definitions, the figures shownin this report may diverge considerably from those which are quoted by media, publishedby national authorities or given in national budgets. Equipment expenditure includesexpenditure on major equipment as well as on research and development devoted to majorequipment. Personnel expenditure includes pensions paid to retirees.The cut-off date for information used in this report was 21 November 2019. Figures for2019 are estimates.News and information is routinely placed on the NATO website. This includes audio files, transcripts and high resolutionphotographs, which are posted as soon as possible after events of media interest. Check the 'What's New' file.Nouvelles et informations sont régulièrement affichées sur le site Web de l'OTAN, sous la forme de fichiers audio, detranscriptions et de photographies destinées à la publication. Elles sont disponibles le plus rapidement possible après lesévénements présentant un intérêt pour les médias. Cliquer sur "Quoi de neuf?"North Atlantic Treaty Organisation – Organisation du Traité de l’Atlantique NordPress & Media – Presse & MédiasB-1110 Bruxelles BelgiqueE-mail: press@hq.nato.int – Tel.: 32 2 707 50 41 – Fax: 32 2 707 13 99 – Internet: www.nato.int
Graph 1 : NATO Europe and Canada - defence expenditure(annual real change, based on 2015 prices and exchange -3-420152016201720182019eNotes: Figures for 2019 are estimates. The NATO Europe and Canada aggregate from 2017 onwards includes Montenegro, which became an Ally on 5 June 2017.Graph 2 : Defence expenditure as a share of GDP and equipmentexpenditure as a share of defence expenditure2019eEquipment expenditure as % of defence expenditure%6560BGRNATO guideline 2%Median ALVA/POLGBRDNKDEUALBPRTMNECAN15LTUROUMedian 21.53%ESTNATO guideline 20%CZEGRCBEL10SVN5HRV00.00.51.01.52.02.5Defence expenditure as % of GDPNotes: Figures for 2019 are estimates.-2-3.03.54.0 %
Graph 3 : Defence expenditure as a share of GDP (%)(based on 2015 prices and exchange rates)%4.03.53.423.253.02.52.28 2.142.14 2.042.03 2.01 2.002.0NATO guideline 2%1.891.84 1.801.741.68 1.661.51.521.38 1.36 1.32 1.311.26 1.22 1.211.191.041.00.93 0.920.560.50.020142019eNotes: Figures for 2019 are estimates.Graph 4 : Equipment expenditure as a share of defence expenditure (%)%60(based on 2015 prices and exchange rates)59.05045.141.7403038.630.0 29.327.5 25.724.4 24.2 24.0 23.523.0 22.4NATO guideline 20%20.7 20.62018.11017.5 16.614.814.4 14.4 14.2 13.312.310.87.6020142019eNotes: Figures for 2019 are estimates.-3-6.7
Graph 5 : Defence expenditure(billion US dollars, based on 2015 prices and exchange 9e9103022526004002000United StatesNATO Europe and CanadaNotes: Figures for 2019 are estimates. The NATO Europe and Canada aggregate from 2017 onwards includes Montenegro, which became an Ally on 5 June 2017.Graph 6 : NATO Europe and Canada - defence expenditure(billion US dollars, based on 2015 prices and exchange rates)350 BGR, EST, LVA, LTU,ROU, SVK, SVN325 MNE ALB, HRV CZE, HUN, POL300275250NATO Europe and CanadaNotes: Figures for 2019 are estimates. Includes enlargements which took place in: 1999 (3 Allies), 2004 (7 Allies), 2009 (2 Allies) and 2017 (1 9819951996199319941991199220019891990225
Graph 7 : NATO Europe and Canada - cumulative defence spending over 2016(billion US dollars, based on 2015 prices and exchange 2020222024Figures from 2019 - 2024 are estimates.Graph 8 : NATO Europe and Canada - major equipment expenditure(annual real change, based on 2015 prices and exchange : Figures for 2019 are estimates. The NATO Europe and Canada aggregate from 2017 onwards includes Montenegro,which became an Ally on 5 June 2017.-5-
Table 1 : Defence expenditureMillion national currency 12348,95943,164685,099Current pricesAlbania (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 2015 pricesAlbania (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)Notes: Figures for 2019 are estimates.* These Allies have national laws and political agreements which call for 2% of GDP to be spent on defence annually, consequently estimates are expected tochange accordingly. For the past years, Allies' defence spending was based on the then available GDP data and Allies may, therefore, have met the 2% guidelinewhen using those figures (In 2018, Lithuania met 2% using November 2018 OECD figures).-6-
Table 2 : Defence expenditureMillion US 730,149NATO Europe and 9,479NATO 4,3741,75452512,33618,00065,944685,099Current prices and exchange ratesAlbaniaBelgiumBulgariaCanadaCroatiaCzech sNorwayPoland*PortugalRomania*Slovak RepublicSloveniaSpainTurkeyUnited KingdomUnited StatesConstant 2015 prices and exchange ratesAlbaniaBelgiumBulgariaCanadaCroatiaCzech sNorwayPoland*PortugalRomania*Slovak RepublicSloveniaSpainTurkeyUnited KingdomUnited 12780643110,56411,69662,153696,291NATO Europe and 2,361NATO ,460Notes: Figures for 2019 are estimates. The NATO Europe and Canada and NATO Total aggregates from 2017 onwards include Montenegro, which became an Ally on 5 June2017.* These Allies have national laws and political agreements which call for 2% of GDP to be spent on defence annually, consequently estimates are expected tochange accordingly. For the past years, Allies' defence spending was based on the then available GDP data and Allies may, therefore, have met the 2% guidelinewhen using those figures (In 2018, Lithuania met 2% using November 2018 OECD figures).-7-
Table 3 : Defence expenditure as a share of GDP and annual real changeBased on 2015 .040.921.892.143.42Share of real GDP (%)AlbaniaBelgiumBulgariaCanadaCroatiaCzech sNorwayPoland*PortugalRomania*Slovak RepublicSloveniaSpainTurkeyUnited KingdomUnited StatesNATO Europe and Canada1.471.431.431.441.481.521.57NATO 48.117.202.09-0.241.496.71NATO Europe and Canada-1.20-0.961.712.975.714.424.59NATO Total-4.80-4.07-1.601.95-1.083.096.05Annual real change (%)AlbaniaBelgiumBulgaria*CanadaCroatiaCzech sNorwayPoland*PortugalRomania*Slovak RepublicSloveniaSpainTurkeyUnited KingdomUnited StatesNotes: Figures for 2019 are estimates. The NATO Europe and Canada and NATO Total aggregates from 2017 onwards include Montenegro, which became an Ally on 5June 2017.* These Allies have national laws and political agreements which call for 2% of GDP to be spent on defence annually, consequently estimates are expected tochange accordingly. For the past years, Allies' defence spending was based on the then available GDP data and Allies may, therefore, have met the 2% guidelinewhen using those figures (In 2018, Lithuania met 2% using November 2018 OECD figures).-8-
Table 4 : Defence expenditure real change 2014-2019Million US dollars (2015 prices and exchange rates)20142019eReal change 2014- Share of real GDP Share of real GDP2019e (%)2014 (%)2019e 21,86040.551.011.31Croatia8929344.771.841.68Czech k 8,00052.741.451.89United .733.42EstoniaItalyUnited StatesNotes: Figures for 2019 are estimates.* These Allies have national laws and political agreements which call for 2% of GDP to be spent on defence annually, consequently estimates are expected to changeaccordingly. For the past years, Allies' defence spending was based on the then available GDP data and Allies may, therefore, have met the 2% guideline when using thosefigures (In 2018, Lithuania met 2% using November 2018 OECD figures).-9-
Table 5 : Real GDPBillion US dollars (2015 prices and exchange atia48485051535456Czech 99203209213217Romania166171178186199208214Slovak 4NATO Europe and TO ted KingdomUnited StatesNotes: Figures for 2019 are estimates. The NATO Europe and NATO Total aggregates from 2017 onwards include Montenegro, which became anAlly on 5 June 2017.-10-
Table 6 : GDP per capita and defence expenditure per capita2015 prices and exchange 8.424.328.511.746.060.5NATO Europe and Canada28.729.229.730.130.831.331.5NATO 3842953232253222532642229852,072NATO Europe and Canada2,0221,9061,8481,8601,7911,8161,921NATO Total1,0399919719849699931,048GDP per capita (thousand US dollars)AlbaniaBelgiumBulgariaCanadaCroatiaCzech rlandsNorwayPolandPortugalRomaniaSlovak RepublicSloveniaSpainTurkeyUnited KingdomUnited StatesDefence expenditure per capita (US dollars)AlbaniaBelgiumBulgariaCanadaCroatiaCzech orwayPolandPortugalRomaniaSlovak RepublicSloveniaSpainTurkeyUnited KingdomUnited StatesNotes: Figures for 2019 are estimates. The NATO Europe and NATO Total aggregates from 2017 onwards include Montenegro, which became an Ally on5 June 2017.-11-
Table 7 : Military 322.51,338.1NATO Europe and Canada1,9301,8911,8111,7881,8591,8971,921NATO giumBulgariaCanadaCroatiaCzech orwayPolandPortugalRomaniaSlovak RepublicSloveniaSpainTurkeyUnited KingdomUnited StatesNotes: Figures for 2019 are estimates. The NATO Europe and NATO Total aggregates from 2017 onwards include Montenegro, which became an Ally on 5 June 2017.-12-
Table 8a : Distribution of defence expenditure by main categoryPercentage of total defence ipment (a)AlbaniaBelgiumBulgariaCanadaCroatiaCzech orwayPolandPortugalRomaniaSlovak RepublicSloveniaSpainTurkeyUnited KingdomUnited StatesPersonnel (b)AlbaniaBelgiumBulgariaCanadaCroatiaCzech orwayPolandPortugalRomaniaSlovak RepublicSloveniaSpainTurkeyUnited KingdomUnited StatesNotes: Figures for 2019 are estimates.(a) Equipment expenditure includes major equipment expenditure and R&D devoted to major equipment.(b) Personnel expenditure includes military and civilian expenditure and pensions.-13-
Table 8b : Distribution of defence expenditure by main categoryPercentage of total defence tructure (c)AlbaniaBelgiumBulgariaCanadaCroatiaCzech orwayPolandPortugalRomaniaSlovak RepublicSloveniaSpainTurkeyUnited KingdomUnited StatesOther (d)AlbaniaBelgiumBulgariaCanadaCroatiaCzech orwayPolandPortugalRomaniaSlovak RepublicSloveniaSpainTurkeyUnited KingdomUnited StatesNotes: Figures for 2019 are estimates.(c) Infrastructure expenditure includes NATO common infrastructure and national military construction.(d) Other expenditure includes operations and maintenance expenditure, other R&D expenditure and expenditure not allocated among above-mentionedcategories.-14-
NATO defence expenditureNATO defines defence expenditure as paymentsmade by a national government specifically tomeet the needs of its armed forces, those ofAllies or of the Alliance. A major component ofdefence expenditure is payments for ArmedForces financed from within the Ministry ofDefence (MoD) budget. Armed Forces includeLand, Maritime and Air forces as well as Jointformations such as Administration andCommand, Special Operations Forces, MedicalService, Logistic Command etc. They might alsoinclude "Other Forces" like Ministry of Interiortroops, national police forces, gendarmerie,carabinieri, coast guards etc. In such cases,expenditure should be included only inproportion to the forces that are trained inmilitary tactics, are equipped as a military force,can operate under direct military authority indeployed operations, and can, realistically, bedeployed outside national territory in support ofa military force. Also, expenditure on OtherForces financed through the budgets ofministries other than MoD should be included indefence expenditure.Expenditure for the military component ofmixed civilian-military activities is included, butonly when the military component can bespecifically accounted for or estimated.Expenditure on NATO common infrastructureis included in the total defence expenditure ofeach Ally only to the extent of that nation's netcontribution.War damage payments and spending on civildefence are both excluded from the NATOdefinition of defence expenditure.NATO uses United States dollars (USD) as thecommon currency denominator. The exchangerate applied to each Ally is the average annualrate published by the International MonetaryFund (IMF).Note to readers:Iceland has no armed forces. For nations of theEuro zone, and Montenegro, monetary values innational currency are expressed in Euros for allyears. Estonia adopted Euros from 2011, Latviafrom 2014, and Lithuania from 2015.Montenegro joined the Alliance in 2017.Pension payments made directly by thegovernment to retired military and civilianemployees of military departments should beincluded regardless of whether these paymentsare made from the budget of the MoD or otherministries.To avoid any ambiguity, the fiscal year has beendesignated by the year which includes the highestnumber of months: e.g. 2019 represents the fiscalyear 2019/2020 for Canada and UnitedKingdom, and the fiscal year 2018/2019 for theUnited States. Because of rounding, the totalfigures may differ from the sum of theircomponents.Expenditure for peacekeeping and humanitarianoperations (paid by MoD or other ministries),the destruction of weapons, equipment andammunition, contributions to eligible NATOmanaged trust funds, and the costs associatedwith inspection and control of equipmentdestruction are included in defence expenditure.Conventional signs:e. .Research and development (R&D) costs are tobe included in defence expenditure. R&D costsshould also include expenditure for thoseprojects that do not successfully lead toproduction of equipment.-15-estimatednilnot availablebreak in continuity of seriesdecimal point
Nomenclature of NATO defence expenditure:11.11
12.3 10.8 7.6 6.7 0 10 20 30 40 50 60 2014 2019e % NATO guideline 20%-4- Notes: Figures for 2019 are estimates. The NATO Europ Graph 5 : Defence expenditure (billion US dollars, based on 2015 prices and exchange rates) e and Canada aggregate from 2017 onwards
NCS is comprised of US National Stock Numbers and NATO Stock Numbers NATO codification is based on U.S. Federal Catalog System Currently there are more than 18 million NSNs NATO-wide Used by 62 nations around the world, including 28 NATO countries (to find a list of the 28 NATO participating countries please follow)
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