The majority of respondents from the global defence suppliers industry identified 'the economic crisis leading to defence budget cuts globally', as one of the key trends likely to affect the global defence industry in the next two years. Additionally, 48% and 40% of respondents identified 'China's significant increase in defence expenditure leading to other Asian countries incresing their defence spending', along with 'fiscal deficit of top spenders, such as the UK, UK and Italy', are other key trends respectively.
Uncertainty of the European debit crisis, austerity measures by the US, and increasing pressure on governments to divert funds to poverty alleviation measures are expected to force a decrease in overall defence budgets.
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