Chapter 1 - Finance
                         
Table 1.20 NATO Countries' Defence Expenditure as % of GDP 2004-2008
This table shows defence payments accrued by NATO member states within financial years 2004-2008 as a percentage of GDP. The figures are extracted 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. Figures are based on the NATO definition of defence expenditure and are stated at constant prices, where the effects of inflation have been removed.

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. Revisions to individual countries are due to the adoption of the new NATO definitions. More information on the new NATO definition can be found in the International Defence notes and key trends.

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 2000 Prices (Percentage of GDP)
Country 2004     2005     2006     2007   Estimated 2008
NATO - Total1,2 2.9   || 2.9   || 2.9   || 2.8 || 2.8
                         
NATO - Europe1,2 1.9   || 1.8   || 1.8   || 1.7 || 1.7
Belgium 1.2     1.1     1.1     1.1   1.1
Bulgaria1,3 2.5     2.5   || 2.8 r   3.0   2.6
Czech Republic 1.8     1.8     1.7     1.4   1.4
Denmark 1.4     1.3     1.4     1.3   1.3
Estonia1 1.5 r   1.5     1.4     1.8   1.9
France4,5 2.6     2.5   || 2.5 r   2.4   2.3
Germany 1.4     1.4     1.3     1.3   1.3
Greece6 2.6     2.7     2.7     2.6   2.8
Hungary6 1.5     1.4     1.2     1.3   1.2
Italy6 1.8     1.6 r   1.4 r || 1.1   1.1
Latvia1 1.3     1.3     1.6     1.6   1.7
Lithuania1 1.5     1.3     1.3     1.2   1.2
Luxembourg6 0.7     0.7     0.6     0.6 || 0.4
Netherlands 1.5     1.5     1.5     1.5   1.4
Norway 1.9     1.7     1.6     1.6   1.5
Poland 1.8     1.8     1.8     1.8   1.9
Portugal6 1.6     1.7     1.6     1.5   1.5
Romania1 2.0     2.0     1.8     1.5   1.5
Slovak Republic1 1.7     1.7     1.6 r   1.5   1.5
Slovenia1 1.5     1.4 r   1.6     1.5   1.5
Spain 1.2     1.2     1.2     1.2   1.2
Turkey6 2.3 r   2.1 r   2.1 r   1.7   1.7
United Kingdom3 2.2 r || 2.5     2.4 r   2.5   2.2
                         
North America 3.7     3.7     3.7     3.7   3.7
Canada 1.2     1.2     1.2     1.3   1.3
United States7 3.9     3.9 r   3.9     3.9   3.9
Source: NATO
1. Bulgaria, Estonia, Latvia, Lithuatia, 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.