European defence sector grew by 13.8% due to Russia’s war in Ukraine, - Bloomberg
The European defense sector grew by 13.8% in 2024, reaching €183.4 billion, demonstrating accelerated strengthening of defense capabilities against the backdrop of Russian aggression in Ukraine.
This was reported by Censor.NET with reference to Bloomberg.
According to the Aerospace, Security, and Defense Industries Association of Europe (ASD), despite raw material shortages and high costs, the industry is showing significant growth. This is the fourth consecutive year of significant growth, which experts attribute to increased defense budgets following Russia's full-scale invasion of Ukraine.
Increase in jobs
Along with the growth in turnover, employment also increased: the number of jobs in the sector rose by 8.6% to 633,000 people. At the same time, the industry faces challenges, including bottlenecks in supply chains, shortages of critical raw materials and electronic components, high energy costs, a shortage of skilled labor, and trade restrictions due to sanctions against Russia.
"We must ensure that the European defense industry can continue to support the development of sovereign defense capabilities, creating deterrence and protection," said ASD President and Saab CEO Mikael Johansson. He added that this process cannot stop even in the event of a ceasefire or the start of negotiations.
Foreign suppliers
The report also shows that a significant portion of European defense procurement still goes to foreign suppliers, particularly from the US, which creates potential risks in the event of a crisis or a sharp increase in demand.
At the same time, the ASD notes that 98% of the necessary technologies are already available in Europe, and with stable investment and coordination between member states, the continent is capable of fully meeting its own needs in the medium and long term.
