(MENAFN) Even with the war in Ukraine driving demand, revenue for the world's leading arms suppliers decreased in 2022 due to production issues preventing companies from ramping up production, according to researchers on Monday.
The sales of weapons and military services by the top 100 arms companies globally amounted to USD 597 billion in 2022, marking a 3.5 percent decrease compared to 2021, as reported in a new study by the Stockholm International Peace Research Institute (SIPRI).
Simultaneously, heightened geopolitical tensions, coupled with Russia's invasion of Ukraine, spurred an increased demand for weapons and military equipment.
Diego Lopes da Silva, a top researcher at SIPRI, informed a French news agency that in this regard the stoppage in income was “unexpected.”
“What the decrease really shows is that there is a time lag between a demand shock like the war in Ukraine and the ability of companies to scale up production and really meet that demand,” Lopes da Silva stated.
According to SIPRI, the drop in arms sales was largely attributed to reduced revenues among leading arms manufacturers in the United States, as they grappled with "supply chain issues and labor shortages" resulting from the Covid-19 pandemic.
Despite a 7.9 percent decline in the United States alone, the country still accounted for 51 percent of the total arms revenue in 2022, with 42 companies ranking among the world's top 100.
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