Defence expenditure reached a high in the 2020 fiscal year totalling US$14.8bn, which is a 6.5% increase from the previous year. This increased growth is expected to steadily continue as the Turkish budget is estimated to rise to US$17.5bn as of 2025 with a compound annual growth rate (CAGR) of 3.83%.
According to the report, ‘Turkey Defence Market – Attractiveness, Competitive Landscape and Forecasts to 2025’, while macroeconomic figures have shown a contraction of Turkish GDP by -3.14% in 2020 due to the COVID-19 pandemic, spending on defence and prioritising Turkey’s national interests remains a prime concern for President Erdoğan’s cabinet.
Victoria Bosomworth, Associate Aerospace and Defence Analyst at GlobalData, said: “One of the fundamental drivers of the Turkish Government’s investment in defence has been a focus towards increasing the technological developments and capacity of its domestic defence sector, seeking greater autonomy in terms of indigenously produced military acquisitions, as well as attempting to position itself as one of the leading nations globally in terms of defence exports.
“A significant development in recent years that is indicative of the country’s defence prioritisation has been the reorganization of government structures, whereby Turkey’s main procurement agency, the Presidency of Defence Industries (SSB), now reports directly to the president. However, efforts to develop domestic industry and capability are likely to be hindered more by geopolitical relations than by COVID-19, with Turkey currently attempting to re-join the F-35 programme after being ejected for acquiring Russian S-400 missiles in 2019.”
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