London, May 14th, 2013 – Austerity measures and focus on reducing public debt are expected to stabilize the Belgian defense budget at US$3 billion at the end of the forecast period (2014-18). The country’s defense budget, which values US$3.6 billion in 2013, declined at a CAGR of -2.43% during the review period (2009-13) and is expected to drop further over the forecast period to reach US$3.1 billion by 2018 at a CAGR of -2.82%. Joint operations with NATO allies and military modernization programs are expected to drive the country’s military expenditure over the forecast period. The defense budget as a percentage of GDP is expected to decline from an average of 0.8% during the review period to 0.5% in 2018.
Belgian defense imports saw a drastic decline in 2010 and again in 2012, although they appeared to recover in 2011. The country’s arms imports are expected to recover gradually over the forecast period due to the procurement plans of NH90 helicopters, Javelin and EuroSpike anti-tank missiles, and the procurement of A400M military transport aircraft. Historically, defense companies based in neighboring European countries such as the Netherlands, Portugal, Switzerland, and Italy have been the main arms suppliers to Belgium. Ships, armored vehicles, and missiles accounted for the majority of defense imports.
The Belgian budget allocation for defense capital expenditure is expected to increase slightly from an average of 22.7% of the total defense budget during the review period to 23.3% over the forecast period. However, the cumulative capital expenditure over the forecast periods expected to be US$3.8 billion compared to US$4.2 during the review period, owing to the budget cuts and economic pressures. The country is expected to spend more on the procurement of defense equipment to replace its outdated equipment and reduce spending on infrastructure and other capital expenditure. Belgium’s personnel expenditure is expected to reduce to US$1.9 billion by 2018, due to pruning of the country’s armed forces. Moreover, the country’s per capita defense expenditure is also expected to decrease from US$320.9 in 2013 to US$260.8 by 2018.
Comprehensive Table of Contents and more on the report @ http://www.rnrmarketresearch.com/future-of-the-belgian-defense-industry-market-attractiveness-competitive-landscape-and-forecasts-to-2018-market-report.html
Belgian defense imports saw a drastic decline in 2010 and again in 2012, although they appeared to recover in 2011. The country’s arms imports are expected to recover gradually over the forecast period due to the procurement plans of NH90 helicopters, Javelin and EuroSpike anti-tank missiles, and the procurement of A400M military transport aircraft. Historically, defense companies based in neighboring European countries such as the Netherlands, Portugal, Switzerland, and Italy have been the main arms suppliers to Belgium. Ships, armored vehicles, and missiles accounted for the majority of defense imports.
The Belgian budget allocation for defense capital expenditure is expected to increase slightly from an average of 22.7% of the total defense budget during the review period to 23.3% over the forecast period. However, the cumulative capital expenditure over the forecast periods expected to be US$3.8 billion compared to US$4.2 during the review period, owing to the budget cuts and economic pressures. The country is expected to spend more on the procurement of defense equipment to replace its outdated equipment and reduce spending on infrastructure and other capital expenditure. Belgium’s personnel expenditure is expected to reduce to US$1.9 billion by 2018, due to pruning of the country’s armed forces. Moreover, the country’s per capita defense expenditure is also expected to decrease from US$320.9 in 2013 to US$260.8 by 2018.
Comprehensive Table of Contents and more on the report @ http://www.rnrmarketresearch.com/future-of-the-belgian-defense-industry-market-attractiveness-competitive-landscape-and-forecasts-to-2018-market-report.html