The international arms trade will continue to increase in 2021. But the corona pandemic has led to supply problems and limited growth.
The 100 largest arms companies will provide arms and other military services totaling $592 billion (€561 billion) in 2021. This amount is 1.9 percent higher than a year earlier. This is according to a new report from the Stockholm International Peace Research Institute (SIPRI).
But growth has been limited by global supply chain issues. Labor shortages and difficulties in sourcing raw materials also make it more difficult for arms companies to deliver on time.
SIPRI predicts that supply problems due to the war in Ukraine will continue in the coming years. The US and the EU sent billions of dollars worth of arms to Ukraine last year and must therefore replenish their stocks. This can be difficult, as Russia is a major supplier of raw materials for weapons production.
The United States still dominates global arms production. Forty American companies are in the top 100 largest arms companies. Together they sold $299 billion worth of weapons. At the same time, the United States was the only country to record a decline in sales: 0.9% less than in 2020.
Meanwhile, sales of China’s eight largest arms companies rose 6.3 percent to $109 billion in 2021. European companies took 27 positions among the top hundred. They sold 4.2% more last year than in 2020.
