DUBLIN--(BUSINESS WIRE)--Research and Markets (http://www.researchandmarkets.com/research/ptvkq6/the_argentine) has announced the addition of iCD Research's new report "The Argentine Defense Industry - Market Opportunities and Entry Strategies, Analyses and Forecasts to 2017" to their offering.
The Argentine defense budget stands at US$3.64 billion in 2012 and recorded a CAGR of 15.77% during the review period. This healthy growth is expected to continue with a CAGR of 19.22% over the forecast period, which is mainly driven by modernization plans, participation in peacekeeping missions, and disputes over the sovereignty of the Falkland Islands and their natural resources. During the review period, capital expenditure was allocated an average of 4% of the defense budget and this low allocation was due to the high expenditure on salaries and pensions, which account for 70% of the defense budget. However, modernization plans are expected to increase capital expenditure to an average of 7.8% of the defense budget during the forecast period.
The Argentine defense budget stands at US$3.64 billion in 2012, the result of a CAGR of 15.77% during the review period, and this robust growth was primarily driven by high personnel turnover in the armed forces. The government announced a 21% wage increase in the salaries of the armed forces in 2010. In 2013 the defense budget is estimated to be US$4.22 billion and is expected to register a CAGR of 19.22% during the forecast period to reach US$8.53 billion by 2017. This strong growth is a result of the need to modernize the Argentine armed forces following decades of underinvestment after defeat in the Falklands war in 1982 and the collapse of the Argentine economy in 2001. The government intends to increase the defense budget of the country from 0.8% of GDP in 2012 to 1.1% of GDP and, while the time period for doing so is unclear, it is estimated that the defense budget will increase to 1.5% of GDP by 2017.
Homeland security expenditure recorded a CAGR of 25.84% during the review period and is expected to increase at a CAGR of 3.83% during the forecast period, to reach US$5.2 billion by 2017. Homeland security expenditure is computed by combining the budget for the federal police, national gendarmerie, navy coast guard, and the airport security police budget. The federal police received the highest budget allocation with 40.5% of the total homeland security expenditure during the review period, followed by national gendarmerie, which accounted for an average of 35.6%, while the coast guard received an average of 19.9%, and airport security police accounted for the remaining 4.1% of the homeland security budget. The Ministry of Security is expected to procure advanced communication devices, safety equipment, and both land and air transport equipment.
- Fábrica Argentina de Aviones SA (FAdeA)
- Astillero Río Santiago
- The Institute of Scientific and Technological Research for the Defense (Citidef)
- Dirección General de Fabricaciones Militares (DGFM)
- INVAP SE
- Nostromo Defensa SA
For more information visit http://www.researchandmarkets.com/research/ptvkq6/the_argentine
Source: iCD Research