According to the Stockholm International Peace Research Institute (SIPRI), in its latest report published less than a week ago, significant demand for military spending has been noted, due to rising tensions. Global military spending in 2020 amounted to $ 1981 billion or about 1.650 billion euros.
This represents an increase of more than 2.6% in real terms since 2019. Therefore, this data shows that the increase in military spending will drive the growth of the market. For 62% of the latter in 2020, according to SIPRI, it is the United States, China, India, Russia and the United Kingdom which have put the most in the pocket while the gross domestic product (Global GDP) fell 4.4% according to the International Monetary Fund’s projection of October 2020 (IMF), mainly due to the economic impacts of the Covid-19 pandemic.
As a result, the military burden as a percentage of GDP, reached a global average of 2.4% in 2020, up from 2.2% in 2019. This is the largest annual increase in such spending since 2009. Morocco, which devotes 4.3% of its GDP to military spending, is among the top 10 of these countries (Oman (11% of GDP), Saudi Arabia (8.4%), Kuwait (6.5%), Israel (5.6%), Jordan (5.0%), Algeria (6.7%), Azerbaijan (5.4%), Armenia (4.9%), Morocco (4.3%) and Russia (4.3%)).
Far from the spending giants who draw their power from armaments (USA, China, India, Russia and United Kingdom) and to remain in sobriety or forced humility or not, in the MENA region (Middle East and Africa North), combined military spending fell 6.5% in 2020 to $ 143 billion (Saudi Arabia (-10%), Kuwait (-5.9%), Bahrain, (9.8%)). As for those of sub-Saharan Africa, they increased by 3.4% in 2020 to reach 18.5 billion dollars thanks to spending by Uganda (+46%), Chad (+31%), Nigeria (+29%), Mauritania (+23%) and Mali (+22%). Military spending in South America fell 2.1% to $ 43.5 billion, largely due to a 3.1% drop in spending by Brazil, the biggest military spender of the sub-region.
For us, Morocco’s military spending continued its gradual increase and reached $ 4.8 billion in fiscal year 2020. With this jackpot, the Kingdom finds itself in 40th place in the world in the SIPRI ranking, nibbling suddenly some five places compared to 2019, an increase of 29% and more than 54% compared to the last decade (2011). The SIPRI report explains this situation by the vast arms purchase program launched in 2017 and “The ongoing conflict between Morocco and the Polisario and the tensions with neighboring Algeria have also led Morocco to spend more on its army”. In addition, the Office of the Federal Register (USA) recently announced that “Morocco has settled the amount of the order for 25 new F-16, BLOCK 72, TYPE VIPER ($ 3.778 billion), and the cost of the modernization of the 23 F-16 already existing (985.2 million dollars)“, the totality settled thus amounts to 4.9 billion dollars. And precisely what about Algeria, which along with Morocco imported 70% of the arms on the continent between 2016 and 2020? Algerian expenditure on arms has increased by 64% since 2015, which places it at the level of the 6th largest importer of arms in the world.
The said report further indicates that the Covid-19 pandemic has not had a significant impact on global military spending in 2020 even though some countries have clearly reallocated part of their initially planned military spending to this fight, such as the Chile or South Korea.