Commitments from governments to boost defence spending as global geopolitical tensions arise have driven investors into affiliated stocks and buoyed confidence in the future of the sector.
Overall global military expenditure is on the rise, having reached $2.4trn in 2023, according to a report published by the Stockholm International Peace Research Institute. Since then, newly elected UK prime minister Keir Starmer made a "cast iron" commitment to increase the country's defence spending to 2.5% of GDP just days into his tenure, as he travelled to Washington for the annual summit of the NATO defence alliance. As of June 2024, 23 out of 32 NATO countries were meeting the alliance's 2% budget spending threshold, with European members and Canada gradually increasing their a...
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