London, March 5th, 2012 - The Belgian defense budget recorded a CAGR of -0.61%, driven by the implementation of defense plans to counter potential terrorist threats and participation in peacekeeping initiatives. The defense budget, which stood at 0.7% of GDP in 2011, is expected to decrease to 0.6% of GDP by 2016, due to defense budget cuts announced by the Belgian government. During the review period (2007 - 2011), capital expenditure allocation stood at an average of 22.4% of the total defense budget, and throughout the forecast period (2012 - 2016), this is expected to increase to an average of 24.6%. In addition to this, the defense budget’s share of revenue expenditure is expected to reduce from an average of 77.6% in the review period, to an average of 75.4% in the forecast period.
The graph below shows Belgian defense expenditure in 2007 – 2011:
During the review period, Belgium’s equipment expenditure experienced a CAGR of 5.18%, and this is expected to increase during the forecast period and register a CAGR of 5.48%. From 2013, equipment expenditure is expected to increase and reach US$762 million by 2016. This expected increase is a result of the fact that the Belgian government participates in EU collaborative equipment programs such as the A400M and the multinational space-based imaging system (MUSIS).
As a result of the global economic crisis and the high percentage of public debt in GDP, the Belgian government plans to reduce its fiscal budget over the forecast period, and this will result in further defense budget cuts. Consequently, there will be a decline in personnel expenditure as troop numbers are further reduced, leading to a predicted CAGR for personnel expenditure of 1.87% during the forecast period.
To purchase the full version of ‘The Belgian Defense Industry - Market Opportunities and Entry Strategies, Analyses and Forecasts to 2016’, please click here.
Industry Review is a collection of incisive, regularly updated market reports across 40+ industry sectors and 100+ countries.
We provide access to the latest data on global and local markets, key industries, top companies, M&A activity, new product launches and trends so you can make faster and better informed business decisions.
The reports in our store draw on robust primary and secondary research, proprietary databases, industry surveys and insightful analysis from our own expert teams and from carefully selected third-party publishers.
With access to over 400 in-house analysts and journalists, and a global media presence in over 30 industries, Industry Review delivers in-depth knowledge of local markets worldwide.
For more information, please visit our website at www.industryreview.com
For more information on the article, please contact:
Tel: +44 (0) 20 7936 6671