World’s arms companies see 4.2 percent increase in revenue in 2023 due to wars
Date
12/2/2024 1:40:32 AM
(MENAFN) The world's 100 largest arms companies experienced a significant increase in sales last year, driven by the ongoing conflicts in Ukraine and Gaza, as well as broader geopolitical tensions. According to a report from the Stockholm International Peace Research Institute (SIPRI) released on Monday, the total revenues of these companies rose by 4.2 percent in 2023, reaching USD632 billion, after a decline in the previous year. This increase is adjusted for currency fluctuations, reflecting the growing demand for military products and services globally.
Arms revenue refers to the income generated from the sale of military products and services to both domestic and international military customers. SIPRI highlighted that many arms companies have ramped up production to meet the heightened demand for weapons, driven by ongoing conflicts and instability. The institute also projects that this upward trend in arms sales will continue throughout 2024, as global tensions persist.
US companies made up nearly half of the global arms revenues, with their sales rising by 2.5 percent to reach USD317 billion. This dominance in the global market highlights the central role the United States plays in the arms industry, with its companies supplying weapons to countries worldwide. In addition to the US, SIPRI also noted substantial growth in arms companies from Russia and the Middle East, further expanding the global distribution of military equipment.
The report also indicated notable growth for German arms companies, which saw their revenues increase by 7.5 percent to a total of USD10.7 billion. These companies’ increased sales reflect the broader trend of rising arms revenues, as nations across the world continue to prioritize military spending in response to global security challenges.
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