The rise in defence spending that looks likely in many countries over the next few years will boost demand and output, albeit by less than the headline-grabbing figures might suggest. Meanwhile, higher defence spending could give a significant boost to the productive potential of economies in the long run. But this would happen over decades, rather than years, and is not guaranteed.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services