US Arms Exports Reach Record High in 2024 Amid Global Security Concerns
US military equipment sales to foreign governments surged 29% to $318.7 billion, driven by demand related to Ukraine and global conflicts.
US arms exports surged to a record $318.7 billion in 2024, marking a 29% increase compared to the previous year.
This rise in sales reflects growing demand from countries looking to replenish stocks sent to Ukraine and prepare for potential global conflicts, the US State Department reported on Friday.
The increase underscores expectations of continued strong performance for US defense contractors such as Lockheed Martin, General Dynamics, and Northrop Grumman, whose shares are expected to rise amid heightened geopolitical instability.
The surge in arms sales comes as countries around the world seek to bolster their defense inventories, particularly in light of Russia’s invasion of Ukraine.
US officials have emphasized that arms sales are a key tool in foreign policy, with long-term implications for global and regional security.
In 2024, the US approved significant sales to foreign governments, including $23 billion worth of F-16 jets and upgrades to Turkey, $18.8 billion worth of F-15 fighter jets to Israel, and $2.5 billion in M1A2 Abrams tanks to Romania.
These agreements are expected to drive future growth for US defense manufacturers, who are seeing an influx of orders for artillery rounds, Patriot missile interceptors, and armored vehicles.
Arms sales to foreign governments are typically conducted in two ways: direct commercial sales, where companies negotiate deals directly with foreign governments, and foreign military sales, where the US government intermediates.
Both methods require US government approval.
In fiscal 2024, direct commercial sales reached $200.8 billion, up from $157.5 billion the previous year, while foreign military sales increased to $117.9 billion from $80.9 billion.
The rapid expansion in arms sales aligns with broader defense policy goals, as articulated by former President Donald Trump, who called for NATO members to increase their defense spending.
Trump suggested NATO countries should aim to allocate 5% of their GDP to defense, a sharp increase from the current 2% target.
As the US continues to respond to global security challenges, the demand for military equipment from its manufacturers is expected to remain high.
This rise in sales reflects growing demand from countries looking to replenish stocks sent to Ukraine and prepare for potential global conflicts, the US State Department reported on Friday.
The increase underscores expectations of continued strong performance for US defense contractors such as Lockheed Martin, General Dynamics, and Northrop Grumman, whose shares are expected to rise amid heightened geopolitical instability.
The surge in arms sales comes as countries around the world seek to bolster their defense inventories, particularly in light of Russia’s invasion of Ukraine.
US officials have emphasized that arms sales are a key tool in foreign policy, with long-term implications for global and regional security.
In 2024, the US approved significant sales to foreign governments, including $23 billion worth of F-16 jets and upgrades to Turkey, $18.8 billion worth of F-15 fighter jets to Israel, and $2.5 billion in M1A2 Abrams tanks to Romania.
These agreements are expected to drive future growth for US defense manufacturers, who are seeing an influx of orders for artillery rounds, Patriot missile interceptors, and armored vehicles.
Arms sales to foreign governments are typically conducted in two ways: direct commercial sales, where companies negotiate deals directly with foreign governments, and foreign military sales, where the US government intermediates.
Both methods require US government approval.
In fiscal 2024, direct commercial sales reached $200.8 billion, up from $157.5 billion the previous year, while foreign military sales increased to $117.9 billion from $80.9 billion.
The rapid expansion in arms sales aligns with broader defense policy goals, as articulated by former President Donald Trump, who called for NATO members to increase their defense spending.
Trump suggested NATO countries should aim to allocate 5% of their GDP to defense, a sharp increase from the current 2% target.
As the US continues to respond to global security challenges, the demand for military equipment from its manufacturers is expected to remain high.
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