VATICAN CITY - A report by the Stockholm International Peace Research Institute (SIPRI) shows that in 2023, profits from the arms trade will increase by 4.2 percent from the previous year, driven by the wars in Ukraine and Gaza and heightened global tensions, with companies based in Russia and the Middle East leading the increase.
Lisa Zengarini, Vatican City
According to a new report by the Stockholm International Peace Research Institute (SIPRI), the global arms industry's revenues will reach $632 billion in 2023, an increase of 4.2 percent from 2022.
This increase reflects the impact of ongoing conflicts, such as the wars in Ukraine and Gaza, rising tensions in East Asia and arms programmes in other countries. This trend is likely to continue in 2024 as conflicts and geopolitical tensions persist, the Swedish Institute's experts said.
United States of America
The data shows that the United States maintained its dominance in the arms sector in 2023, with the 41 companies in the SIPRI top 100 accounting for $317 billion, or 50 percent of global arms revenues - a 2.5 percent increase from the previous year.
China
In China, the world's second-largest arms producer, the sales of its top nine arms companies increased by only 0.7 percent "amid a slowing economy", but their revenues still reached 103 billion. Chinese companies are focusing on upgrading the country's military with advanced systems that are crucial to its strategic ambitions in the South China Sea, Taiwan and along the border with India.
NATO countries
The report highlights how geopolitical tensions increase global arms revenues. In Europe, NATO countries have increased military spending in response to Russia's invasion of Ukraine, resulting in arms companies in various countries seeing an increase in sales.
Russia
The figures for Russia, while not complete, give a clear signal of an economy that is increasingly war-oriented. According to the report, sales of the two Russian groups in the ranking rose by 40 percent, mainly due to a 49 percent increase in sales of the state-owned conglomerate Rostec.
Countries of the Middle East
The war in Ukraine and the first months of the Israeli offensive in Gaza following the 7 October Hamas attack have also boosted manufacturers in the Middle East, who have seen an average 18% increase in sales.
Israel's top three manufacturers recorded sales of $13.6 billion, up 15 percent from 2022, while three Turkey-based groups, such as drone maker Baykar, saw sales rise 24 percent - boosted by Ukraine and Turkey's investment in its defense.
Asia
In Asia, concerns about Taiwan's security and the border conflict between India and China have also led to increased investment in defence.
The tendency to weaponise was particularly evident in the sales growth of the four South Korean manufacturers, whose sales grew by an average of 39 per cent, and the five Japanese firms, which recorded an average increase of 35 per cent.
The Pope's repeated calls for disarmament
Pope Francis, in his tireless appeals for peace, often denounces the arms industry and its "instruments of death" that fuel wars, and argues that world hunger could be eliminated if money for arms production were diverted directly to addressing poverty and to development, health and education.
He reiterated this in his recent message to the G-20 in Rio de Janeiro, Brazil, in which he denounced the arms spending, greed and inequalities that cause hunger and poverty.
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