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| Chapter 1 - Finance |
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| Table 1.22 Top World-wide Military Spenders: 2007 |
This table shows the Top 15 World-wide Military Spenders in 2007. Figures are in US billion Dollars and at 2005 Prices and Exchange Rates. Countries are ranked separately using Market Exchange Rates and Purchasing Power Parity (PPP rates). If a different base year were used, the rankings could change due to fluctuations in exchange rates.
Conversion into a common currency using Market Exchange Rates (MER) tends to undervalue the currency and hence the scale of expenditure of lower income countries, although this may also be because a large part of the economy of a lower income country is domestically based and not based on internationally traded goods and services. Attempts are often made to circumvent this problem using Purchasing Power Parity (PPP) measures. These use currency conversion rates which equalise the overall price of a bundle of goods and services in each country. However PPP measures can be highly inaccurate because of the difficulty of allowing for differences in quality and devising appropriate and relevant "weighting" of individual goods and services. Civilian based PPPs may also not be representative of defence goods and services. As such, this table must be regarded as providing only an illustrative ranking of world-wide military spending.
The data in this table are outside the scope of National Statistics because they are provided by an organisation outside the UK Government Statistical Service.
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| At constant 2005 Prices and Exchange Rates |
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| Market Exchange Rates |
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Purchasing Power Parity Rates1 |
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Spending |
Spending Per Capita |
World Share |
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Spending |
| Rank |
Country |
US$ Billions |
US$ |
% |
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Rank |
Country |
US$ Billions |
| 1 |
USA |
546.8 |
1 799 |
45 |
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1 |
USA |
546.8 |
| 2 |
UK |
59.7 |
995 |
5 |
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2 |
China |
[140.3] |
| 3 |
China |
[58.3] |
[44] |
[5] |
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3 |
Russia |
[78.8] |
| 4 |
France |
53.6 |
880 |
4 |
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4 |
India |
72.7 |
| 5 |
Japan |
43.6 |
339 |
4 |
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5 |
UK |
54.7 |
| Sub-total Top 5 |
762.0 |
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63 |
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Sub-total Top 5 |
893.3 |
| 6 |
Germany |
36.9 |
447 |
3 |
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6 |
Saudi Arabia2 |
52.8 |
| 7 |
Russia |
[35.4] |
[249] |
[3] |
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7 |
France |
47.9 |
| 8 |
Saudi Arabia2 |
33.8 |
1 310 |
3 |
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8 |
Japan |
37.0 |
| 9 |
Italy |
33.1 |
568 |
3 |
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9 |
Germany |
33.0 |
| 10 |
India |
24.2 |
21 |
2 |
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10 |
Italy |
29.6 |
| Sub-total Top 10 |
925.4 |
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76 |
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Sub-total Top 10 |
1 093.6 |
| 11 |
South Korea |
22.6 |
470 |
2 |
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11 |
South Korea |
29.4 |
| 12 |
Brazil |
15.3 |
80 |
1 |
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12 |
Brazil |
26.7 |
| 13 |
Canada |
15.2 |
461 |
1 |
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13 |
Iran3 |
22.1 |
| 14 |
Australia |
15.1 |
733 |
1 |
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14 |
Turkey |
16.5 |
| 15 |
Spain |
14.6 |
336 |
1 |
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15 |
Taiwan |
15.8 |
| Sub-total Top 15 |
1 008.2 |
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83 |
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Sub-total Top 15 |
1 204.1 |
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| World Total |
1 214 |
183 |
100 |
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World Total |
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| Source: Stockholm International Peace Research Institute (SIPRI) |
| 1. The figures in PPP dollar terms are converted at PPP rates (for 2005), based on prices comparisons of the components of GDP. |
| 2. The figures for Saudi Arabia include expenditure for public order and safety and might be slight overestimates. |
3. The figure for Iran is for national defence and does not include spending on the Revolutionary Guards Corps, which constitutes a considerable part of Iran's
total military expenditure.
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| [ ] Indicates SIPRI estimate |
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Introduction