Romania to Invest US$9.39 bln on its Armed Forces during Coming 5 Years, Informs iCD Research
21 Jun 2012 • by Natalie Aster
Romanian defense expenditure declined at a CAGR of -11.96% during the review period to an estimated value of US$1.64 billion in 2012 as a consequence of the global financial crisis and fiscal pressures in Romania. The country’s military expenditure is estimated to register a CAGR of 6.78% during the forecast period, to value US$2.14 billion in 2016. Defense expenditure is expected to be driven by factors such as participation in peace keeping missions, joint training operations, and improvements in border control measures. As a result of a decrease in overall defense expenditure, the country’s defense budget as a percentage of GDP is also expected to decline, from 0.8% in 2011 to 0.7% in 2016.
Romania is expected to invest US$9.39 billion in its armed forces, of which expenditure on the acquisition of military hardware is forecast to be US$1.56 billion, offering foreign OEMs limited opportunities to cater to the Romanian defense industry. Due to the economic crisis, Romania had postponed the procurement of equipment in 2011, which resulted in dropping shares of capital expenditure in overall defense expenditure.
According to the report “The Romanian Defense Industry: Market Opportunities and Entry Strategies, Analyses and Forecasts to 2016” by iCD Research, Romania dropped in rank to 25th in the EU. Incidents of malpractice within the country’s military industrial base may limit the growth of the country’s defense sector. In addition to damaging the country’s image in the global arms market, it also discourages foreign OEMs from entering the market.
The Romanian Defense Industry: Market Opportunities and Entry Strategies, Analyses and Forecasts to 2016
Published: June, 2012
Price: US$ 1.250,00
As a result of low investment on R&D of advanced technology defense systems, the country’s defense capabilities are limited in terms of production of aircraft, small arms, and ammunition. Many domestic companies act as subcontractors to larger European and US defense companies. This forced the country to import defense equipment such as air defense systems, sensors, aircraft and aircraft parts, armored vehicles, missiles, and engines, as domestic suppliers lack the capabilities to manufacture advanced defense systems.
More information can be found in the report “The Romanian Defense Industry: Market Opportunities and Entry Strategies, Analyses and Forecasts to 2016” by iCD Research.
To order the report or ask for sample pages contact [email protected]