Global arms sales increase due to war and conflict

Revenue for the world 's major arms manufacturers increased last year due to demand stemming from the Ukraine conflict and the Gaza Strip conflict.

The conflict in Ukraine contributed to increased arms sales in 2023.

AFP reported today, December 2nd, citing a report by the Stockholm International Peace Research Institute (SIPRI, Sweden), that the revenue from weapons and military services of the world's top 100 contractors reached $632 billion in 2023, a 4.2% increase compared to the previous year.

Industry revenue declined in 2022 as global arms manufacturers struggled to meet international demand. However, many contractors found ways to increase production last year.

The US must spend heavily to bolster its air defenses in Ukraine and the Middle East.

In a sign reflecting the continued increase in demand for weapons due to warfare and conflict, all 100 companies recorded sales exceeding $1 billion for the first time in 2023.

"Arms sales increased in 2023 and this trend is likely to continue in 2024," AFP quoted Lorenzo Scarazzato, a researcher at SIPRI, as saying.

Scarazzato added that the figures from the top 100 companies worldwide still do not fully reflect the true scale of demand from countries, and many companies are hiring more staff to increase weapons production.

Among the top bidders on the list, American companies recorded a 2.5% increase in revenue and accounted for half of global arms sales. Currently, the US has 41 manufacturers in the top 100.

In Europe, where 27 of the top 100 manufacturing companies are located, contractors saw average revenue growth of only 0.2%. However, these companies were still in the process of fulfilling old contracts last year, so the 2023 revenue figures do not truly reflect actual demand.

At the same time, companies in Russia and the Middle East saw a surge in revenue.

Data from Russia, though incomplete, shows that the revenue of the two companies in the top 100 increased by 40%. Meanwhile, the revenue of contractors in the Middle East increased by an average of 18%.

In Asia, the trend of rearmament is particularly reflected in the figures of four South Korean manufacturers, with average revenue increases of 39%, and a 35% increase for five Japanese manufacturers.

Meanwhile, nine Chinese companies, despite a revenue increase of only 0.7%, still achieved sales of $103 billion in 2023.

Source: https://thanhnien.vn/doanh-thu-vu-khi-toan-cau-tang-vi-chien-su-xung-dot-185241202072503769.htm