Chapter 1 - Finance
                   
Table 1.19 NATO Countries' Defence Expenditure 2004 - 2008
This table shows defence payments accrued within financial years 2004-2008 for NATO member states. Figures are stated at 2008 US dollar constant prices and current exchange rates. They have been derived by DASA from Table 1 in the NATO Press Release "Financial and Economic Data Relating to NATO Defence" dated 19th February 2009 which is available on the NATO website. These figures have not been endorsed by NATO.

The NATO definition of defence expenditure differs from national definitions so the figures quoted may diverge considerably from those given in national budgets. Expenditure is included for countries that provide Military Assistance. Expenditure is not included for countries receiving assistance. The financial year has been designated by the year which includes the highest number of months. For example, year 2007 represents 2007/08 for Canada and the United Kingdom and 2006/07 for the United States (where the financial year for United States runs from October through to September).

Defence expenditures have been calculated on the basis of the revised NATO definition agreed in 2004. Most nations have now reported defence expenditures according to this new definition. More information on the new NATO definition can be found in the International Defence notes and key trends.

Differences between the totals and sums of the components are caused by rounding.

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.
Constant 2008 Prices & Current Exchange Rates (US$ billion)
Country 2004   2005   2006   2007   Estimated 2008
NATO Total1,2 802.4 || 831.7 || 845.3 || 881.3 || 895.2
                   
NATO - Europe1,2 268.5 || 271.3 || 275.2 || 294.1 || 300.8
Belgium 4.8   4.6   4.5   5.3   5.5
Bulgaria1,3 0.7   0.7 || 0.9   1.2   1.3
Czech Republic 2.2   2.4   2.5   2.6   3.2
Denmark 4.0   3.8   4.1   4.3   4.4
Estonia1 0.2   0.2   0.2   0.4   0.5
France4,5 59.4   57.4 || 58.5   63.1   66.2
Germany 42.6   41.3   40.0   43.5   46.2
Greece6 6.7   7.3   7.7   8.4   10.0
Hungary6 1.7   1.7   1.5   1.8   1.8
Italy6 38.2   36.4   35.1 || 29.3   30.5
Latvia1 0.2   0.2   0.3   0.5   0.5
Lithuania1 0.3   0.3   0.4   0.5   0.5
Luxembourg6 0.3   0.3   0.3   0.3 || 0.2
Netherlands 10.5   10.4   10.7   11.7   12.1
Norway 5.5   5.3   5.3   6.0   5.9
Poland 5.2   6.0   6.4   8.0   10.2
Portugal6 3.2   3.4   3.3   3.4   3.7
Romania1 1.7   2.1   2.4   2.7   3.0
Slovak Republic1 0.8   0.9   1.0   1.2   1.5
Slovenia1 0.6   0.6   0.6   0.7   0.8
Spain 14.2   14.2   15.2   17.1   19.0
Turkey6 10.5   11.2   12.1   12.1   13.3
United Kingdom3 55.0 || 60.6   62.1   70.4   60.5
                   
North America 533.8   560.4   570.2   587.2   594.4
Canada 12.9   14.3   15.8   18.3   19.5
United States7 520.9   546.1   554.4   568.9   574.9
Source: DASA derived estimates from NATO data
1. Bulgaria, Estonia, Latvia, Lithuania, Romania, the Slovak Republic and Slovenia joined the NATO Alliance in 2004. Most Defence expenditures have been
    calculated on the basis of the revised NATO definition agreed in 2004.
2. Iceland is a member of the NATO Alliance but has no armed forces.
3. Data include military pensions, for the United Kingdom from 2005 and for Bulgaria from 2006.
4. France is a member of the Alliance but does not belong to the integrated military structure and does not participate in collective force planning. The defence
    data relating to France are indicative only.
5. Data include non-deployable elements of Other Forces and, from 2006, they are calculated with a new accounting methodology.
6. Data do not include non-deployable elements of Other Forces; for Greece, Hungary, Portugal and Turkey from 2002, for Italy from 2007 and for Luxembourg
    from 2008.
7. Data do not include pensions.