Due to growing capability of Chinese military, Taiwan if increasing funds allocated on defence projects.
Taiwan’s defence expenditure is expected to grow from the current $9.9bn to $10.9bn by 2021, witnessing a compound annual growth rate (CAGR) of 2.38%, according to a report by Strategic Defence Intelligence (SDI).
The report further forecasts that the defence budget as a percentage of the nation’s GDP will average 1.8%, while the average capital expenditure allocation will grow from the historic 16.9% to 18.8% over the forecast period.
Procurement contracts related to multi-role aircraft and their maintenance, repair and overhaul (MRO), missile defence systems, corvettes and diesel-electric submarines will drive the capital expenditure allocation.
Author: Daniel Kasprzycki
Source: Report: Taiwan’s defence expenditure to reach approximately $11bn by 2021, www.airforce-technology.com