Forecast: Government Expenditure on Defence by Government Level in Germany

The defense expenditure by the German government has shown a general upward trend from 2013 to 2023. Starting at €29.77 billion in 2013, the expenditure fluctuated slightly in the early years but demonstrated steady growth from 2016 onwards. By 2023, the expenditure reached €42.63 billion, presenting consistent year-on-year increases since 2016. The Compound Annual Growth Rate (CAGR) over the last five years stands at 3.78%. This growth is forecasted to continue, reaching €49.07 billion by 2028, with a forecasted 5-year CAGR of 2.23%.

Key Variations:

• Significant increase from 2016 to 2017 with 8.61% growth.
• Growth has stabilized between 3-4% annually since 2019.
• CAGR over the last five years (up to 2023) is 3.78%.

Future trends to watch for include potential geopolitical instabilities that may drive further increases in defense budgets. Monitoring policy changes and international relations will be crucial as they can significantly influence future defense spending trajectories.