Military expenditure in Australia, measured as a percentage of GDP, has shown a mixed trajectory between 2013 and 2023. There was noticeable growth touching a peak of 2.09% in 2016, followed by some fluctuations, ultimately settling at 1.83% in 2023. The last two years saw declines of 4.54% and 3.8% respectively. The CAGR over the past five years (2018-2023) was -0.74%.
Looking ahead, the forecast from 2024 to 2028 indicates a gradual decline, with the expenditure expected to reach 1.63% of GDP by 2028. The predicted CAGR for this period is -1.59%, aligning with a broader trend of reducing military spending.
Trends to watch for:
- Geopolitical changes that might affect Australia's defense policies.
- Potential shifts in government budget priorities.
- Technological advancements that might influence defense spending.
