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China Boosts Defense Spending

March 5th, 2013
in econ_news, syndication

Econintersect:  China has announced its budget for 2013 and defense will get 10.7% more than in 2012.  Corrected for inflation the real increase is 7.0%.  China's 2013 defense budget is $116 billion.  This compares to the U.S. spending more than four times that amount, $500 +/- billion, depending on how much of sequester is implemented, and near $600 +/- billion when overseas military operations are included.  China will spend nearly 5.3% of its budget on defense; the U.S. spent just over 16% of its fiscal 2013 budget on defense.

chinadefensebudget

Follow up:

The graph displayed is quite misleading.  The red line shows real GDP growth while the defense spending growth is given in nominal terms.  The nominal growth in 2011 was 15.7% and 2012 11.2%.  The average annual real growth in those two years was 3.1%.  This the inflation adjusted growth for 2013 (7.0%) is more than double what has been over recent years.

Sources:









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