2023-Public-Sector-Perspectives

Georgi Yordanov Head of Public Sector Emerging Europe, Citi Santiago Silva Restrepo Public Sector Group, Citi Josefina Rochette Public Sector Group, Citi Moreover, over the last few years, the world’s major powers have increased their military investment, reflecting a clear change in strategic positioning and military restructuring to adapt to the shifting global environment (Figure 1). Likewise, 15 NATO countries, as well as Sweden, have stated that they will increase spending on defense, and five NATO countries are set to meet NATO’s spending goal for the first time (Figure 2). Figure 1: Major powers defense spending since 2018 (USD), rebased to 100 112 110 108 106 104 102 100 98 96 94 2018 2019 2020 US UK France China Russia Germany India Source: Citi Research, SIPRI data A New Era for the Defense Industry R ussia’s invasion of Ukraine, along with several additional global and regional geopolitical tensions, have recently led to a reassessment of many countries’ defense requirements. Major powers including the US, the UK, France and Germany are now shifting their priorities and budgets from counterterrorism to other military capabilities. Citi Perspectives for the Public Sector 33