”Global defense spending has reached new heights, unlocking potential investment opportunities, according to Dina Ting, Head of Global Index Portfolio Management, Franklin Templeton. While the United States is still by far the world’s largest spender on aerospace and defense, countries including the United Kingdom, Germany and Canada are increasing their military budgets at a faster rate. In fact, global defense spending last year reached a record high of nearly US$2.5 trillion—more than a 7% rise in real terms from the prior year and an average of 1.9% of gross domestic product.1 We see this as an ongoing trend, driven by rising threat perceptions and the demand for more modernized technologies, such as advanced cybersecurity and drone innovations that are increasingly reliant on artificial intelligence capabilities.”
Morten W. Langer
