2023-Public-Sector-Perspectives

Figure 2: 2020 defense spending and planned increases relative to 2020 GDP for NATO countries and others, as of April 29, 2022 1 , % 1 Norway’s GDP is dependent on oil and gas; it will rise this year, and thus the country will likely not make the 2% threshold. 2 Sweden is not member of NATO. 3 Weighted average of other NATO countries; includes planned defense spending increases in five of these countries (Estonia, Latvia, Lithuania, Luxembourg, and Slovenia). Source: Defense News ; International Monetary Fund; NATO; Stockholm International Peace Research Institute Defense is now a priority The war in Ukraine and increasing geopolitical tensions elsewhere in the world have acted as a clear catalyst for democratic governments and institutions to prioritize security areas including collective defense, crisis management and cooperative security as part of their risk and resilience frameworks. Governments are now calling on defense companies to deliver a broader range of capabilities to mitigate risk and maximize resilience. As the enormous financial and social impacts of conflict on society have become more evident, governments and other stakeholders are transitioning from a “just in time” to a “just in case” mindset. 34 A New Era for the Defense Industry