Chapter 1 - Finance
                         
Table 1.20 NATO Countries' Defence Expenditure as % of GDP 2005-2009
This table shows defence payments accrued by NATO member states within the financial years 2005-2009 as a percentage of GDP. The figures are extracted from Table 3 in the NATO Press Release. 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. Defence expenditures also include pensions for the military and civilian retirees from the MOD. The financial year has been designated by the year which includes the highest number of months. For example, year 2008 represents 2008/09 for Canada and the United Kingdom and 2007/08 for the United States (where the financial year for the 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 2005     2006     2007     2008   2009
NATO - Total1,2 2.9   || 2.9   || 2.9 r || 2.9 || 2.9
                         
NATO - Europe1,2 1.8   || 1.8   || 1.7   || 1.7 || 1.7
Albania1 *     *     *     *   2.0
Belgium 1.1     1.1     1.1     1.2   1.2
Bulgaria3 2.5     2.3 r   2.5 r   2.0   1.9
Croatia1 *     *     *     *   1.7
Czech Republic 1.8     1.7     1.5 r   1.4   1.6
Denmark 1.3     1.4     1.3     1.4   1.4
Estonia 1.5     1.4     1.7 r   1.8   1.8
France4 2.5   || 2.5     2.4     2.3 || 2.1
Germany 1.4     1.3     1.3     1.3   1.4
Greece5 2.8 r   2.8 r   2.6     2.9   3.1
Hungary5 1.4     1.2     1.3     1.2   1.1
Italy5 1.6     1.4   || 1.1     1.1   1.1
Latvia 1.3     1.6     1.5 r   1.6   1.2
Lithuania 1.3     1.3     1.2     1.2   1.2
Luxembourg5 0.7     0.6     0.6   || 0.4   0.5
Netherlands 1.5     1.5     1.5     1.4   1.5
Norway6 1.7     1.6     1.6     1.6 || 1.7
Poland 1.8     1.8     1.8     1.6   1.7
Portugal5 1.7     1.6     1.5     1.5   1.6
Romania 2.0     1.8     1.5     1.5   1.4
Slovak Republic 1.7     1.6     1.5     1.5 || 1.5
Slovenia 1.4     1.6     1.5     1.5   1.6
Spain 1.2     1.2     1.2     1.2   1.2
Turkey5 2.1     2.1     1.7     1.9   1.6
United Kingdom7 2.5     2.4     2.5     2.6   2.7
                         
North America 3.7   || 3.8 r   3.8 r   3.8   3.7
Canada 1.2     1.2     1.3     1.3   1.5
United States7 3.9   || 4.0 r   4.0 r   4.0   3.8
Source: NATO
1. Albania and Croatia joined the Alliance in 2009.
2. Iceland is a member of the Alliance but has no armed forces.
3. Defence Expenditures do not include pensions
4. Data include non-deployable elements of Other Forces and from 2006, they are calculated with a new accounting methodology. From 2009, data do not
    include the Gendarmerie.
5. Data do not include non-deployable elements of Other Forces; for Greece, Hungary, Portugal ant Turkey from 2002, for Italy from 2007 and for Luxembourg
    from 2008.
6. From 2009, new methodology used to calculate pensions.
7. Data include military pensions, for the United Kingdom from 2005 and for United States from 2006.