Czech Republic's defense expenditure to reach US$2.5 billion by 2015

Friday 25 March 2011, Amsterdam

The Czech Republic's defense expenditure grew at a CAGR of 0.96% during the review period, and is estimated to equal US$2.4 billion in 2011, according the new defense sector analyses available on ASDReports.com. Active participation in NATO (North Atlantic Treaty Organization) and UN (United Nations) peacekeeping missions, and government measures to protect against potential terrorist threats stimulated expenditure during the review period (2011-2015). Such factors are expected to continue to drive defense expenditure throughout the forecast period, with spending anticipated to increase at a CAGR of 0.63% to reach US$2.5 billion by 2015. As a percentage of GDP (gross domestic product), the country's defense budget stood at 1.3% in 2010, and is expected to decline to 0.8% of GDP by 2015, largely due to the country's GDP increasing at a faster rate than its defense budget.

The capital expenditure allocation of the defense budget, which stood at an average of 21.9% during the review period, is estimated to decline to an average of 17.7% during the forecast period as a result of a reduced budget allocation for equipment purchases. Consequently, revenue expenditure is likely to increase from 78.1% during the review period to 82.3% during the forecast period.

Companies reviewed:

* Aero Vodochody A.S.
* Aura s.r.o., Lom Praha s.p.
* Dicom, spol. s.r.o.
* The Quittner & Schimek
* Vojensky Opravarensky Podnik 025 Novy Jicin, s.p.
* Ceska zbrojovka a.s.
* Tesla, akciova spolecnost
* Omnipol, Tatra a.s.
* Letov Letecka Vyroba s.r.o.

Key opportunities for equipment suppliers are expected in areas such as military transport aircraft, wheeled armored personnel carriers and medium off-road trucks.