“The recent increase in US defence expenditure is due to the well-defined measures undertaken by the country to reinforce its position as the most powerful military nation in the world. This goes hand in hand with the initiatives to replace aged and worn-out weapons that have been used in the Iraq and Afghanistan wars,” says Deepanjana Deb, analyst at SDI.

Tensions in Egypt and Syria, coupled with arms proliferation in Lebanon and other Middle Eastern countries, have intensified the global terrorist threat. “The production of ballistic missiles and weapons of mass destruction in the Middle East, which aid terrorist organisation such as Al-Qaida and Hezbollah, along with Iran’s focus on developing its own nuclear capability, pose a threat to the US,” says Deb. Consequently, the US is expected to embark upon a nuclear defence modernisation plan and missile defence programme which is anticipated to drive the defence expenditure over the next five years.