Asia Centric: Is the Global Defense Supercycle Sustainable?
Global military budgets are surging at a pace unseen since the Cold War, fueling a defense-spending supercycle. NATO allies are aiming to spend up to 5% of GDP on defense...
By Clara Chen · Bloomberg
Global military budgets are surging at a pace unseen since the Cold War, fueling a defense-spending supercycle. NATO allies are aiming to spend up to 5% of GDP on defense by 2035, while Asian powers such as Japan and South Korea are also boosting spending. This environment has been a boon for defense stocks, with South Korea’s Hanwha Aerospace rising a spectacular 2,600% since the start of the Russia-Ukraine War, even eclipsing Rheinmetall’s 1,700% run.