Forecast: General Government Investment in Defence in Germany

The general government investment in defense in Germany has exhibited fluctuations over the past decade. Notably, from 2013 to 2014, investment decreased significantly by 16.17% and 21.9% year-on-year, respectively. However, the trend reversed in subsequent years, peaking in 2018 with a 15.1% increase. Despite a dip in 2019, there was a mild recovery observed from 2020 through 2023. As of 2023, the investment stood at 10.17 units, with a slight year-on-year growth of 0.39%. The compound annual growth rate (CAGR) over the last five years was -0.14%, indicating minor fluctuations overall.

Future trends to watch for include:

• Gradual increase in defense investment forecasted up to 2028 with a forecasted 5-year CAGR of 0.25%.
• Shift in geopolitical dynamics potentially influencing defense spending policies in Germany.
• Technological advancements and modernization efforts driving investment changes in the defense sector.