WASHINGTON (Sputnik) — Defense spending will continue to grow world-wide in 2017 amid elevated global security risks, Moody's Senior Vice President Russell Solomon said in a press release on Wednesday.
"We expect global defense expenditures to rise 2-4 percent over the next 12 to 18 months, up modestly from our previous forecast in December of 2-3 percent growth amid improved funding clarity in the US and still-high geopolitical tensions," Solomon stated.
"This year, large commercial airplane deliveries are estimated to rise by as little as 1 percent to as much as 4 percent before increasing to 7 percent to 8 percent annually in 2017-18 and remaining high into the next decade," the release noted.
Moody’s added, however, that the number of order cancellations in the aerospace industry will remain heightened due to lower oil prices, a strong US dollar and macroeconomic pressures in emerging markets.
