The same evidence indicates that French arms exports fell by about 41% last year, with an order volume of 4. 4.9 billion, compared to 8. 8.3 billion in 2019. The French Ministry of Defense believes this fall will come as a surprise. The global health crisis, which is mainly linked to Govt-19 and “does not reflect a fundamental trend.”
The sale of Rafale fighter jets to Egypt and India in particular has already reduced French arms exports by 8.6% in 2015, 2016 and 2018. The same evidence says. However, the export viability of the Defense Industrial and Technological Platform (PITT) is significant. The total number of licenses issued and their amount was the same as in 2019. This is a clear sign of both the decline of our defense sector and its potential to contribute to the economic recovery of our country, and maintains its position as the world’s 3rd largest exporter. ”
The changing and highly competitive global market
Furthermore, the report notes that the global arms market continues to grow in the face of rising military spending. Following seven years of uninterrupted expansion, global defense spending is projected to increase by 3.9% to $ 1.83 trillion by 2020. So the economic crisis caused by the Govt-19 epidemic has not really affected the military budgets of the states, at least by 2020.
The return of strategic competition between the major powers – China, Russia and the US – will help keep states’ military spending high, especially in relation to acquiring new military capabilities.
The increase in the defense budgets of the United States and China will account for almost two-thirds of the total increase in global defense spending by 2020.
China has doubled its defense budget since 2012 – the second largest in the world with more than $ 190 billion. It is firmly committed to the policy of capacity modernization and technology capture.
Similarly, the United States, in response to the commitment of these rival powers, increased its defense budget to $ 738 billion in fiscal 2020 and turned competition between major powers into a strategic measure of their defense policy.