No, Argentina Will Not Be Spending $2 Billion on Military Equipment

by William Ostrove and Shaun McDougall, Forecast International Military Market Analysts 

F-16 Fighting Falcon is on the wish list

Recent reports in the Argentine press indicate that the country has plans to purchase over $2 billion worth of military equipment over the next few years. In a letter leaked to El Destape, Argentine ambassador to the U.S., Martin Lousteau, listed equipment needed by the Argentine Army and Air Force to conduct peacekeeping missions, combat terrorism, and counter illegal trafficking. The list, which would be the envy of even the best-equipped militaries, included F-16 fighter jets, Stryker armored vehicles, air surveillance radar systems, AH-1 Cobra Helicopters, UH-60 and CH-47 transport helicopters, and anti-tank weaponry. Continue reading

Top Eight Countries Dominate Defense Spending in Latin America

by Bill Ostrove, International Military Markets Analyst, Forecast International.

Defense spending in Latin America will remain strong between 2017 and 2021. While allocations will not be as high as in other regions, economies are expected to slowly improve after years of commodity price declines, giving governments more resources for defense. At the same time, governments will continue to battle violent gangs and illegal trafficking. Continue reading

In a Sensible Move, Argentina’s Defense Minister Decides Not to Purchase Supersonic Jets

by Bill Ostrove, International Military Markets Analyst, Forecast International.

Argentina IA-58 Pucara. Source: Wikipedia/Rob Schleiffert

Argentine Minister of Defense Julio Martinez has ruled out the purchase of supersonic fighter jets for the Argentine Air Force. The defense minister made his announcement on February 1 during an interview with Argentina’s Radio El Mundo.

Argentina has been searching for new supersonic fighter jets since it retired its Mirage IIIs in November 2015. The search has been wide-ranging, with Buenos Aires searching the world for both new and secondhand fighters. Continue reading

Crime and Internal Strife Remain Greatest Drivers of Military Spending in Latin America

by Bill Ostrove, International Military Markets Analyst, Forecast International.

Georgia Army National Guard provides CQB/MOUT [close quarters combat and military operations on urbanized terrain] weapons handling instruction with two soldiers from the Guatemalan Interagency Task Force.  Photo: Georgia National Guard

The greatest threat to most Latin American governments is internal.  Even though transitioning to a democracy and using effective counterinsurgency strategies have successfully defeated – or at least defused  – several insurgencies, the risk of guerrilla activity remains.  This is especially true in Colombia and, to a lesser extent, Peru.  In Mexico and Central America, violent gangs have forced a military response. Continue reading

Brazil’s Budget Spending Limit Amendment to Cut into Defense Spending

by Bill Ostrove, International Military Markets Analyst, Forecast International.

brazil-flag-small

On December 13, Brazil’s Senate approved a constitutional amendment, effective December 15, 2016, that will cap growth of government spending. This law will have a direct effect on defense spending, limiting it for at least the next 10 years.  However, with Brazil’s large defense budget (number 10 in the world), the market in that country will continue to be strong. Continue reading

The Effect of 2016’s Presidential Election on Worldwide Aerospace and Defense Markets Part 1/2

By Matthew Beres, Forecast International.

election-2016

Welcome to the Forecast Roundtable Podcast. Forecast Roundtable brings together expert analysts, industry professionals, and government officials to discuss the latest issues in the aerospace and defense markets. Produced at the Forecast International headquarters, Forecast Roundtable offers unique and in depth insight and discussion on any range of topics from geopolitics to aerospace and defense markets. Topic suggestions are welcome. Continue reading

Brazilian Economic Crisis Limits Defense Spending

by Bill Ostrove, International Military Markets Analyst, Forecast International.

Embraer KC-390

The Embraer KC-390 is being acquired by Brazil.

While Brazil is a country largely at peace, it also maintains the largest defense budget in Latin America. Externally, Brazil’s military is responsible for defending the country’s territory. This became more important after Brazil discovered oil reserves off its coast, prompting investment in air and sea assets. Although Latin American countries are relatively free from conflict, the Brazilian military is still seen as a deterrent to other nations in the region. For example, many of Brazil’s current acquisition programs have been a response to Venezuelan purchases. Continue reading

Argentina’s Defense Spending to Climb, Even as Government Tackles Deficit

by Bill Ostrove, International Military Markets Analyst, Forecast International.

Argentina IA-58 Pucara

Argentina IA-58 Pucara

While Argentina does not face the same level of internal and external threats that some other Latin American countries do, defense spending has steadily increased in terms of Argentinean pesos.  Both Kirchner administrations were somewhat amenable to increasing defense spending.  Furthermore, President Néstor Kirchner made revitalization of the nation’s defense industry a priority, and a significant portion of the extra funds were directed toward this end.  The extra allocations were divided equally among the three services. Continue reading

Peru Maintains Vigilance, Continues Participation in International Missions

by Bill Ostrove, International Military Markets Analyst, Forecast International.

1411707-peru-flag-2014

Overall, Peru is a nation at peace.  Although Peru has a history of warfare with its neighbors, the country has largely peaceful borders at this time, reducing the need for its military to act as a deterrent against foreign forces.  Peru has even improved relations with its most recent opponent on the battlefield, Ecuador.  When Ecuador was hit by an earthquake on April 18, 2016, Peru responded by sending soldiers and equipment to aid its neighbor. Continue reading

Fight Against Drug Cartels and Organized Crime Drives Mexican Defense Spending

by Bill Ostrove, International Military Markets Analyst, Forecast International.

Mexican Army Paratroopers.

Mexican Army Paratroopers.

The fight against drug cartels and organized crime remains the primary driver of defense procurement by Mexico. As Mexico’s economy improves and operations against drug cartels continue, defense spending is being steadily increased. Between 2011 and 2015, Mexico’s defense budget increased at a compound annual growth rate (CAGR) of 5.8 percent. Still, defense spending remains low relative to the overall economy, making up only 0.54 percent of GDP in 2015. Continue reading