Romanian Defense Expenditure US$1.7 Billion by 2015

Thursday 21 April 2011, Amsterdam

Romanian Defense Expenditure US$1.7 Billion by 2015

The Romanian defense expenditure registered a CARC of -1.53% during the review period and is estimated to be worth US$1.5 billion in 2011. Active participation in North Atlantic Treaty Organization (NATO) and United Nations (UN) peacekeeping missions, joint operations and border control measures drove expenditure during the review period. These factors are expected to continue to drive defense expenditure throughout the forecast period, with spending anticipated to increase at a CAGR of 2.83% to reach US$1.7 billion by 2015. As a percentage of the gross domestic product (GDP), the country's defense budget stood at 0.9% in 2011 and is expected to decline to 0.6% of GDP by 2015, mainly because the country's GDP is increasing at a faster rate than its military expenditure.

The capital expenditure allocation of the defense budget, which stood at an average of 12.9% during the review period, is estimated to increase to an average of 14.5% during the forecast period as a result of an increase in equipment purchases. Consequently, revenue expenditure is likely to decrease from an average of 87.1% during the review period to an average of 85.5% during the forecast period.

Key opportunities for equipment suppliers are expected in areas such as military transport aircraft, wheeled armored personnel carriers and F-16 fighter aircraft.

Companies analysed in this study:

* CN Romarm SA
* S.C. Uzina Mecanica Cugir S.A.
* Aerostar S.A.
* Electromagnetica SA
* Avioane Craiova S.A.
* Elprof S.A., IAR S.A.
* IOR S.A.
* Simultec S.R.L
* Turbomecanica S.A.
* Intelcan Technosystems Inc.
* S.C. Eurocopter Romania SA

The Romanian Defense Industry: Market Opportunities and Entry Strategies, Analyses and Forecasts to 2017

The Romanian Defense Industry: Market Opportunities and Entry Strategies, Analyses and Forecasts to 2017

Publish date : October 2012
Report code : ASDR-15262
Pages : 136

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