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Defence Expenditure of NATO Countries (2011-2018)



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10 July/juillet 2018 COMMUNIQUE

PR/CP(2018)091

North Atlantic Treaty Organisation - Organisation du Traité de l’Atlantique Nord Press & Media - Presse & Médias B-1110 Bruxelles Belgique E-mail: press@hq.nato.int - Tel.: 32 2 707 50 41 - Fax: 32 2 707 13 99 - Internet: www.nato.int

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Defence Expenditure of NATO Countries (2011-2018)

NA

TO collects defence expenditure data from Allies on a regular basis and presents aggregates and subsets of this information. Each Ally’s Ministry of Defence reports current and estimated future defence expenditure according to an agreed definition of defence expenditure. The amounts represent payments by a national government actually made, or to be made, during the course of the fiscal year to meet the needs of its armed forces, those of Allies or of the Alliance. In the figures and tables that follow, NATO also uses up-to-date economic and demographic information available from the Directorate-General for Economic and Financial Affairs of the European Commission (DG-ECFIN), and the Organisation for Economic Co-operation and Development (OECD).

In view of differences between both these sources and national GDP forecasts, and also the definition of NATO defence expenditure and national definitions, the figures shown in this report may diverge considerably from those which are quoted by media, published by national authorities or given in national budgets. Equipment expenditure includes expenditure on major equipment as well as on research and development devoted to major equipment. Personnel expenditure includes pensions paid to retirees.

The cut-off date for information used in this report was 2 July 2018. Figures for 2017 and 2018 are estimates.

* Defence expenditure does not include pensions.

-2-

Graph 1 : NATO Europe and Canada - defence expenditure (annual real change, based on 2010 prices and exchange rates)

Graph 2 : Defence expenditure as a share of GDP versus equipment ex penditure as a share of defence expenditure

2018e

Notes: Figures for 2017 and 2018 are estimates. The NATO Europe and Canada aggregate from 2017 includes Montenegro, which became an Ally on 5 June 2017.

** With regard to 2018, these countries have either national laws or political agreements which call for at least 2% of GDP to be spent on defence annually, consequently these estimates are expected to change accordingly.

Cumulative spending increase for the period from 2015 to 2018, above 2014 level: +87.6 Bn USD

-2.34 -2.46

-1

.61

-0.98

1.83

3.14

5.28

3.78

-4

-3

-2

-1

0

1

2

3

4

5

6

2011 2012 2013 2014 2015 2016 2017e 2018e

%

ALB

BE

L

BGR*

CAN

HRV

CZE DNK

EST

FRA

DEU

GRC

HUN

ITA

LVA**

LTU**

LUX

MNE

NLD NOR

POL**

PRT

ROU**

SVK

SVN

ESP

TUR

GBR

USA

0

5

10

15

20

25

30

35

40

45

0.

0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0

Equipment expenditure as % of defence expenditure

Defence expenditure as % of GDP

%

%

NATO guideline 2%

NA

TO guideline 20%

Median 21.09%

Median 1.36%

* Defence expenditure does not include pensions.

-3-

Graph 3 : Defence expenditure as a share of GDP (%) (based on 2010 prices and exchange rates)

Graph 4 : Equipment expenditure as a share of defence expenditure (%) (based on 2010 prices and exchange rates)

Notes: Figures for 2018 are estimates.

*

Defence expenditure does not include pensions. ** With regard to 2018, these countries have either national laws or political agreements which call for at least 2% of GDP to be spent on defence annually, consequently these estimates are expected to change accordingly.

Notes: Figures for 2018 are estimates.

3.50

2.

27 2.14 2.10 2.00 1.98 1.96 1.93 1.81

1.68 1.61 1.58 1.56 1.36 1.35 1.30 1.24 1.23 1.21 1.20 1.19 1.15 1.11 1.08 1.01 0.93 0.93 0.55

0.0

0.5

1

.0

1.5

2.0

2.5

3.0

3.5

4.0

2014 2018e

%

NATO guideline 2%

41.03

34

.69

31.58 31.55 28.88 28.86 26.81 26.77

24.93 23.95 23.66 23.04 21.68 21.12 21.05

18.15 17.61 15.08 14.13 13.43 13.25 12.97 12.40 12.39 10.72 9.66 8.22 8.20

0

5

10

15

20

25

30

35

40

45

2014 2018e

%

NA

TO guideline 20%

Notes: Includes enlargements which took place in: 1999 (3 Allies), 2004 (7 Allies), 2009 (2 Allies) and 2017 (1 Ally). Figures for 2017 and 2018 are estimates.

-4-

Graph 5 : Defence expenditure as a share of GDP (%) (based on 2010 prices and exchange rates)

Graph 6 : NATO Europe and Canada - defence expenditure (billion US dollars, based on 2010 prices and exchange rates)

2.01

1.

47

5.29

3.5

0

3.28

2.4

0

0

1

2

3

4

5

6

7

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017e

2018e

%

United States

NA

TO Total

NATO Europe and Canada

NATO guideline 2%

200

225

250

275

300

325

350

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017e

2018e

+ CZE, HUN, POL

+ BGR, EST, LVA, LTU, RO U, SVK, SVN

+ ALB, HRV + MNE

NA

TO Europe and Canada

Notes: Figures for 2017 and 2018 are estimates. The NATO Europe and Canada aggregate from 2017 includes Montenegro, which became an Ally on 5 June 2017.

-5-

Graph 7 : Defence expenditure (billion US dollars, based on 2010 prices and exchange rates)

Graph 8 : Defence expenditure as a share of GDP (%) (based on 2010 prices and exchange rates)

726 68 6 645 611 594 603 618 623

286

279

275

272 277 286

301 312

1,012

966

920

883 871 889

919 936

0

200

4

00

600

800

1,000

1,200

2011 2012 2013 2014 2015 2016 2017e 2018e

United States NATO Europe and Canada

4.78

4.

42

4.08

3.77

3.56 3.56 3.57 3.50

1.52 1.48 1.44 1.40 1.40 1.42 1.45 1.47

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

5.5

2011 2012 2013 2014 2015 2016 2017e 2018e

United States NATO Europe and Canada

%

Table 1 : Defence expenditure

Million national currency units

2011 2012 2013 2014 2015 2016 2017e 2018e

Current prices

Albania (Leks) 19,877 19,820 19,022 18,788 16,671 16,250 17,199 19,492

Belgium (Euros) 3,956 4,023 3,964 3,913 3,789 3,901 3,997 4,202

Bulgaria* (Leva) 1,066 1,099 1,196 1,102 1,116 1,186 1,255 1,635

Canada (Canadian dollars) 21,808 19,978 18,764 20,076 23,900 23,474 29,156 27,644

Croatia (Kunas) 5,323 5,059 4,848 4,625 4,586 4,241 4,626 4,957

Czech Republic (Koruny) 43,131 42,780 42,035 41,003 47,264 45,598 52,714 58,810

Denmark (Kroner) 24,259 25,618 23,682 22,769 22,633 24,190 24,961 26,700

Estonia (Euros) 280 340 361 386 418 450 479 524

France (Euros) 38,443 39,105 39,402 39,149 39,199 39,950 40,852 42,748

Germany (Euros) 34,630 36,168 34,593 34,749 35,898 37,598 40,447 41,913

Greece (Euros) 4,934 4,384 3,999 3,939 4,073 4,190 4,213 4,111

Hungary (Forint) 295,967 297,650 286,341 281,402 316,338 362,798 402,793 443,719

Italy (Euros) 21,741 20,600 20,078 18,427 17,642 20,226 21,166 21,183

Latvia** (Euros) 206 193 212 221 254 364 454 576

Lithuania** (Euros) 248 252 267 322 425 575 724 873

Luxembourg (Euros) 167 167 176 190 225 213 288 321

Montenegro (Euros) 57 53 49 52 51 56 59 71

Netherlands (Euros) 8,156 8,067 7,702 7,788 7,816 8,234 8,686 10,701

Norway (Kroner) 40,534 41,560 43,518 46,234 46,900 50,937 53,460 57,493

Poland** (Zlotys) 26,979 28,365 28,467 31,874 39,940 37,082 37,548 41,779

Portugal (Euros) 2,627 2,366 2,457 2,263 2,384 2,364 2,398 2,728

Romania** (New Lei) 7,255 7,282 8,160 9,014 10,337 10,738 14,765 18,165

Slovak Republic (Euros) 766 794 729 752 889 907 935 1,085

Slovenia (Euros) 479 423 382 366 361 406 422 466

Spain (Euros) 10,059 10,828 9,495 9,508 10,000 9,014 10,528 11,391

Turkey (Liras) 22,807 24,956 27,466 29,727 32,522 38,203 47,323 60,925

United Kingdom (Pounds) 39,204 36,563 39,824 39,902 38,940 42,189 43,002 44,119

United States (US dollars) 740,744 712,947 680,856 653,942 641,253 656,059 685,957 706,063

Constant 2010 prices

Albania (Leks) 19,427 19,172 18,347 17,845 15,745 15,422 16,101 17,934

Belgium (Euros) 3,878 3,868 3,772 3,699 3,542 3,589 3,617 3,730

Bulgaria* (Leva) 1,006 1,021 1,119 1,026 1,017 1,057 1,105 1,410

Canada (Canadian dollars) 21,123 19,117 17,676 18,546 22,246 21,717 26,372 24,351

Croatia (Kunas) 5,236 4,900 4,659 4,441 4,405 4,077 4,396 4,614

Czech Republic (Koruny) 43,120 42,155 40,836 38,870 44,289 42,205 48,100 53,016

Denmark (Kroner) 24,105 24,865 22,783 21,681 21,401 22,884 23,252 24,609

Estonia (Euros) 266 313 322 338 361 383 393 419

France (Euros) 38,084 38,295 38,290 37,827 37,465 38,108 38,713 40,046

Germany (Euros) 34,259 35,240 33,055 32,619 33,035 34,144 36,174 36,894

Greece (Euros) 4,900 4,371 4,093 4,110 4,294 4,458 4,459 4,330

Hungary (Forint) 289,401 281,528 263,107 250,112 275,962 313,485 335,737 358,681

Italy (Euros) 20,949 19,521 18,526 16,709 15,735 17,632 18,331 18,544

Latvia** (Euros) 194 175 189 194 223 318 385 475

Lithuania** (Euros) 235 233 244 291 383 513 620 726

Luxembourg (Euros) 159 155 161 171 200 192 254 278

Montenegro (Euros) 57 52 48 50 48 50 51 60

Netherlands (Euros) 8,057 7,827 7,359 7,374 7,393 7,721 8,024 9,699

Norway (Kroner) 39,465 39,622 40,244 41,985 41,299 44,006 45,077 47,685

Poland** (Zlotys) 26,135 26,847 26,865 29,933 37,226 34,457 34,235 37,446

Portugal (Euros) 2,634 2,382 2,418 2,211 2,283 2,230 2,231 2,505

Romania** (New Lei) 6,975 6,691 7,250 7,876 8,805 8,962 11,705 13,692

Slovak Republic (Euros) 754 771 705 728 862 883 899 1,022

Slovenia (Euros) 474 416 370 352 344 383 391 423

Spain (Euros) 10,056 10,817 9,452 9,484 9,914 8,911 10,310 10,941

Turkey (Liras) 20,994 21,376 22,225 22,351 22,642 24,613 27,499 31,814

United Kingdom (Pounds) 38,431 35,291 37,720 37,156 36,096 38,351 38,337 38,681

United States (US dollars) 726,021 686,280 644,772 611,089 593,737 603,046 617,669 623,241

* Defence expenditure does not include pensions.

-6-

Notes: Figures for 2017 and 2018 are estimates.

** With regard to 2018, these countries have either national laws or political agreements which call for at least 2% of GDP to be spent on defence annually, consequently these estimates are expected to change accordingly.

Table 2 : Defence expenditure

Million US dollars

2011 2012 2013 2014 2015 2016 2017e 2018e

Current prices and exchange rates

NATO Europe 281,683 263,654 269,434 270,171 235,121 237,921 | 250,287 285,742

Albania 197 183 180 178 132 131 144 179

Belgium 5,500 5,169 5,264 5,192 4,202 4,315 4,504 5,114

Bulgaria* 758 722 811 747 633 671 723 1,014

Croatia 996 865 850 805 669 623 698 799

Czech Republic 2,437 2,185 2,148 1,975 1,921 1,866 2,255 2,821

Denmark 4,518 4,423 4,217 4,057 3,364 3,593 3,780 4,376

Estonia 389 437 480 513 463 497 540 637

France 53,441 50,245 52,316 51,940 43,474 44,191 46,036 52,025

Germany 48,140 46,470 45,931 46,102 39,813 41,590 45,580 51,009

Greece 6,858 5,633 5,309 5,226 4,517 4,635 4,748 5,004

Hungary 1,472 1,322 1,280 1,210 1,132 1,289 1,468 1,733

Italy 30,223 26,468 26,658 24,448 19,566 22,373 23,852 25,780

Latvia** 286 248 281 293 281 403 512 701

Lithuania** 344 324 355 427 471 636 816 1,062

Luxembourg 232 214 234 253 249 236 325 391

Montenegro 80 68 65 69 57 62 66 87

Netherlands 11,339 10,365 10,226 10,332 8,668 9,108 9,788 13,023

Norway 7,232 7,143 7,407 7,337 5,816 6,064 6,463 7,266

Poland** 9,106 8,710 9,007 10,104 10,596 9,405 9,935 12,088

Portugal 3,652 3,040 3,262 3,003 2,644 2,615 2,702 3,320

Romania** 2,380 2,100 2,452 2,691 2,581 2,645 3,643 4,835

Slovak Republic 1,065 1,020 968 997 986 1,003 1,053 1,320

Slovenia 666 543 507 486 401 449 476 567

Spain 13,984 13,912 12,607 12,614 11,090 9,971 11,864 13,863

Turkey 13,616 13,895 14,427 13,583 11,957 12,649 12,972 15,219

United Kingdom 62,852 58,016 62,258 65,658 59,492 56,964 55,344 61,508

North America 762,784 732,941 699,077 672,092 659,938 673,770 708,424 727,664

Canada 22,040 19,994 18,221 18,150 18,685 17,711 22,467 21,601

United States 740,744 712,947 680,856 653,942 641,253 656,059 685,957 706,063

NATO Total 1,044,467 996,595 968,512 942,263 895,059 911,692 | 958,711 1,013,406

Constant 2010 prices and exchange rates

NATO Europe 265,904 260,793 257,691 254,164 255,546 264,766 | 275,342 288,679

Albania 187 184 177 172 151 148 155 173

Belgium 5,137 5,123 4,996 4,898 4,691 4,754 4,790 4,940

Bulgaria* 681 691 757 695 689 715 748 954

Croatia 952 891 847 808 801 742 800 839

Czech Republic 2,258 2,207 2,138 2,035 2,319 2,210 2,519 2,776

Denmark 4,286 4,421 4,051 3,855 3,805 4,069 4,135 4,376

Estonia 352 414 426 448 479 508 520 555

France 50,438 50,718 50,712 50,098 49,619 50,471 51,273 53,038

Germany 45,374 46,673 43,778 43,201 43,753 45,221 47,909 48,862

Greece 6,490 5,789 5,421 5,444 5,687 5,904 5,905 5,735

Hungary 1,392 1,354 1,265 1,203 1,327 1,508 1,615 1,725

Italy 27,746 25,853 24,536 22,130 20,840 23,352 24,278 24,560

Latvia** 256 232 250 257 295 422 510 629

Lithuania** 312 309 323 385 507 680 821 961

Luxembourg 210 206 213 227 265 254 337 369

Montenegro 75 69 63 66 64 66 67 79

Netherlands 10,670 10,367 9,747 9,766 9,791 10,225 10,627 12,845

Norway 6,530 6,556 6,659 6,947 6,833 7,281 7,458 7,890

Poland** 8,667 8,904 8,910 9,927 12,346 11,427 11,354 12,419

Portugal 3,489 3,155 3,203 2,929 3,023 2,953 2,955 3,317

Romania** 2,195 2,105 2,281 2,478 2,770 2,820 3,683 4,308

Slovak Republic 999 1,022 934 964 1,142 1,170 1,190 1,354

Slovenia 627 551 490 467 456 508 518 560

Spain 13,319 14,327 12,519 12,560 13,130 11,802 13,654 14,490

Turkey 13,970 14,224 14,789 14,873 15,066 16,378 18,299 21,170

United Kingdom 59,368 54,517 58,269 57,399 55,761 59,243 59,222 59,755

North America 746,525 704,836 661,929 629,091 615,331 624,126 643,268 646,878

Canada 20,504 18,557 17,158 18,002 21,594 21,081 25,599 23,637

United States 726,021 686,280 644,772 611,089 593,737 603,046 617,669 623,241

NATO Total 1,012,430 965,629 919,620 883,255 870,878 888,892 | 918,610 935,557

* Defence expenditure does not include pensions.

-7-

Notes: Figures for 2017 and 2018 are estimates. The NATO Europe and NATO Total aggregates from 2017 include Montenegro, which became an Ally on 5 June 2017.

** With regard to 2018, these countries have either national laws or political agreements which call for at least 2% of GDP to be spent on defence annually, consequently these estimates are expected to change accordingly.

Table 3 : Defence expenditure as a share of GDP and annual real change

Based on 2010 prices

2011 2012 2013 2014 2015 2016 2017e 2018e

Share of real GDP (%)

NATO Europe 1.55 1.52 1.49 1.44 1.42 1.44 | 1.46 1.50

Albania 1.53 1.49 1.41 1.35 1.16 1.10 1.11 1.19

Belgium 1.04 1.04 1.01 0.98 0.92 0.92 0.91 0.93

Bulgaria* 1.32 1.34 1.46 1.32 1.26 1.26 1.27 1.56

Croatia 1.60 1.53 1.46 1.40 1.35 1.21 1.27 1.30

Czech Republic 1.07 1.05 1.03 0.95 1.03 0.96 1.04 1.11

Denmark 1.31 1.35 1.23 1.15 1.12 1.17 1.16 1.21

Estonia 1.68 1.90 1.91 1.96 2.05 2.13 2.08 2.14

France 1.86 1.87 1.86 1.82 1.78 1.79 1.78 1.81

Germany 1.28 1.31 1.22 1.18 1.18 1.20 1.24 1.24

Greece 2.38 2.29 2.22 2.21 2.31 2.41 2.38 2.27

Hungary 1.05 1.03 0.95 0.86 0.92 1.02 1.05 1.08

Italy 1.30 1.24 1.20 1.08 1.01 1.12 1.15 1.15

Latvia** 1.01 0.88 0.93 0.94 1.04 1.46 1.69 2.00

Lithuania** 0.79 0.76 0.76 0.88 1.14 1.49 1.73 1.96

Luxembourg 0.39 0.38 0.38 0.38 0.43 0.40 0.52 0.55

Montenegro 1.75 1.66 1.47 1.50 1.40 1.42 1.38 1.58

Netherlands 1.26 1.23 1.16 1.15 1.12 1.15 1.16 1.35

Norway 1.51 1.47 1.48 1.51 1.46 1.54 1.55 1.61

Poland** 1.72 1.74 1.72 1.85 2.22 2.00 1.89 1.98

Portugal 1.49 1.41 1.44 1.31 1.33 1.27 1.24 1.36

Romania** 1.29 1.22 1.28 1.35 1.45 1.41 1.72 1.93

Slovak Republic 1.09 1.09 0.98 0.99 1.13 1.12 1.10 1.20

Slovenia 1.30 1.17 1.05 0.97 0.93 1.00 0.98 1.01

Spain 0.94 1.04 0.93 0.92 0.93 0.81 0.90 0.93

Turkey 1.64 1.59 1.52 1.45 1.39 1.46 1.52 1.68

United Kingdom 2.40 2.17 2.27 2.17 2.06 2.15 2.11 2.10

North America 4.43 4.09 3.77 3.50 3.33 3.33 3.35 3.28

Canada 1.23 1.10 0.99 1.01 1.20 1.15 1.36 1.23

United States 4.78 4.42 4.08 3.77 3.56 3.56 3.57 3.50

NATO Total 2.97 2.81 2.64 2.48 2.39 2.40 | 2.42 2.40

Annual real change (%)

NATO Europe -3.16 -1.92 -1.19 -1.37 0.54 3.61 | 3.99 4.84

Albania 0.55 -1.32 -4.30 -2.74 -11.76 -2.05 4.40 11.39

Belgium -2.07 -0.27 -2.48 -1.94 -4.24 1.35 0.76 3.13

Bulgaria* -18.22 1.54 9.53 -8.28 -0.84 3.88 4.58 27.54

Croatia 3.54 -6.42 -4.92 -4.66 -0.81 -7.45 7.82 4.96

Czech Republic -15.13 -2.24 -3.13 -4.82 13.94 -4.71 13.97 10.22

Denmark -4.83 3.15 -8.37 -4.84 -1.29 6.93 1.61 5.83

Estonia 6.05 17.71 2.75 5.26 6.79 6.09 2.46 6.70

France -2.95 0.55 -0.01 -1.21 -0.96 1.72 1.59 3.44

Germany -1.91 2.86 -6.20 -1.32 1.28 3.36 5.94 1.99

Greece -17.86 -10.80 -6.37 0.43 4.46 3.83 0.01 -2.88

Hungary 3.03 -2.72 -6.54 -4.94 10.34 13.60 7.10 6.83

Italy -3.18 -6.82 -5.09 -9.81 -5.83 12.05 3.97 1.16

Latvia** 2.27 -9.53 7.94 2.55 14.79 43.13 20.97 23.31

Lithuania** -4.32 -0.90 4.72 19.15 31.64 33.96 20.83 17.02

Luxembourg -15.15 -2.30 3.71 6.41 16.61 -3.91 32.41 9.54

Montenegro 0.63 -8.11 -8.44 4.49 -3.50 4.33 1.36 18.10

Netherlands -4.90 -2.84 -5.98 0.19 0.26 4.43 3.93 20.87

Norway 0.47 0.40 1.57 4.32 -1.63 6.55 2.43 5.79

Poland** 2.06 2.73 0.07 11.42 24.37 -7.44 -0.64 9.38

Portugal -1.45 -9.56 1.51 -8.56 3.24 -2.32 0.07 12.25

Romania** 5.21 -4.08 8.36 8.63 11.78 1.79 30.60 16.98

Slovak Republic -12.23 2.31 -8.63 3.22 18.53 2.44 1.74 13.72

Slovenia -18.77 -12.07 -11.19 -4.74 -2.33 11.40 1.95 8.27

Spain -9.66 7.57 -12.62 0.33 4.54 -10.11 15.69 6.12

Turkey -1.16 1.82 3.97 0.57 1.30 8.71 11.73 15.69

United Kingdom -1.59 -8.17 6.88 -1.49 -2.85 6.25 -0.04 0.90

North America 1.00 -5.58 -6.09 -4.96 -2.19 1.43 3.07 0.56

Canada 9.71 -9.50 -7.54 4.92 19.95 -2.38 21.44 -7.67

United States 0.78 -5.47 -6.05 -5.22 -2.84 1.57 2.42 0.90

NATO Total -0.13 -4.62 -4.76 -3.95 -1.40 2.07 | 3.34 1.84

* Defence expenditure does not include pensions.

-8-

Notes: Figures for 2017 and 2018 are estimates. The NATO Europe and NATO Total aggregates from 2017 include Montenegro, which became an Ally on 5 June 2017.

** With regard to 2018, these countries have either national laws or political agreements which call for at least 2% of GDP to be spent on defence annually, consequently these estimates are expected to change accordingly.

Table 4 : Real GDP

Billion US dollars (2010 prices and exchange rates)

2011 2012 2013 2014 2015 2016 2017e 2018e

NATO Europe 17,172 17,161 17,289 17,615 17,985 18,328 | 18,840 19,285

Albania 12

12 13 13 13 13 14 14

Belgium 492 493 494 501 508 515 524 533

Bulgaria 52 52 52 53 55 57 59 61

Croatia 60 58 58 58 59 61 63 65

Czech Republic 211 209 208 214 226 231 242 251

Denmark 326 327 330 335 341 348 355 361

Estonia 21 22 22 23 23 24 25 26

France 2,706 2,712 2,728 2,755 2,782 2,813 2,879 2,933

Germany 3,537 3,561 3,582 3,651 3,706 3,775 3,870 3,953

Greece 273 253 245 247 246 245 248 253

Hungary 133 131 134 139 144 147 153 160

Iceland 14 14 14 15 15 16 17 18

Italy 2,138 2,077 2,041 2,044 2,061 2,081 2,114 2,144

Latvia 25 26 27 27 28 29 30 31

Lithuania 39 41 42 44 45 46 47 49

Luxembourg 55 54 56 60 61 63 65 67

Montenegro 4.3 4.2 4.3 4.4 4.5 4.7 4.9 5.0

Netherlands 850 841 840 852 871 890 919 950

Norway 433 445 450 459 468 473 482 490

Poland 503 511 519 536 556 573 599 627

Portugal 234 225 222 224 228 232 238 243

Romania 170 172 178 184 191 200 214 224

Slovak Republic 92 94 95 98 101 105 108 113

Slovenia 48 47 47 48 49 51 53 56

Spain 1,417 1,376 1,352 1,371 1,418 1,464 1,509 1,552

Turkey 854 895 974 1,023 1,083 1,118 1,201 1,262

United Kingdom 2,476 2,513 2,564 2,643 2,705 2,757 2,806 2,845

North America 16,868 17,235 17,538 17,993 18,475 18,748 19,188 19,722

Canada 1,664

1,693 1,735 1,785 1,802 1,828 1,883 1,922

United States 15,204 15,542 15,803 16,209 16,673 16,920 17,305 17,799

NATO Total 34,040 34,396 34,827 35,609 36,460 37,076 | 38,028 39,006

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Notes: Figures for 2017 and 2018 are estimates. The NATO Europe and NATO Total aggregates from 2017 include Montenegro, which became an Ally on 5 June 2017.

Table 5 : GDP per capita and defence expenditure per capita

2010 prices and exchange rates

2011 2012 2013 2014 2015 2016 2017e 2018e

GDP per capita (thousand US dollars)

NATO Europe 30.8 30.6 30.8 31.2 31.7 32.2 | 33.0 33.6

Albania 4.2 4.3 4.3 4.4 4.5 4.7 4.9 5.1

Belgium 44.8 44.6 44.4 44.8 45.2 45.6 46.2 46.7

Bulgaria 7.0 7.1 7.2 7.3 7.6 8.0 8.3 8.6

Croatia 13.9 13.7 13.6 13.6 14.1 14.6 15.2 15.7

Czech Republic 20.1 19.9 19.8 20.3 21.4 21.9 22.8 23.6

Denmark 58.6 58.5 58.8 59.4 60.0 60.7 61.6 62.3

Estonia 15.8 16.5 16.9 17.4 17.8 18.1 19.0 19.7

France 41.4 41.3 41.4 41.6 41.8 42.1 42.9 43.5

Germany 44.1 44.3 44.4 45.1 45.4 45.8 46.8 47.7

Greece 24.6 22.9 22.3 22.6 22.7 22.7 23.2 23.7

Hungary 13.3 13.2 13.5 14.1 14.6 15.0 15.6 16.4

Iceland 42.5 42.9 44.3 44.8 46.2 49.0 50.3 51.1

Italy 35.6 34.4 33.6 33.6 33.9 34.3 34.9 35.4

Latvia 12.3 12.9 13.4 13.8 14.3 14.7 15.6 16.4

Lithuania 13.0 13.7 14.3 14.9 15.4 15.9 16.8 17.6

Luxembourg 105.0 102.2 103.3 106.7 107.6 108.1 108.3 109.6

Montenegro 6.9 6.7 6.9 7.0 7.3 7.5 7.9 8.2

Netherlands 50.9 50.2 50.0 50.5 51.5 52.3 53.7 55.1

Norway 87.5 88.7 88.5 89.3 90.1 90.3 91.3 92.2

Poland 13.1 13.3 13.5 13.9 14.5 14.9 15.6 16.3

Portugal 22.2 21.4 21.2 21.5 22.0 22.4 23.1 23.6

Romania 8.4 8.6 8.9 9.2 9.6 10.2 10.9 11.4

Slovak Republic 17.0 17.3 17.5 18.0 18.7 19.3 19.9 20.7

Slovenia 23.5 22.9 22.6 23.2 23.7 24.5 25.7 26.9

Spain 30.3 29.4 29.0 29.5 30.6 31.5 32.4 33.2

Turkey 11.5 11.9 12.8 13.3 13.9 14.1 14.9 15.5

United Kingdom 39.1 39.4 40.0 40.9 41.5 42.0 42.5 42.8

North America 48.7 49.4 49.8 50.8 51.7 52.1 52.9 54.0

Canada 48.2 48.6 49.2 50.1 50.2 50.5 51.6 52.3

United States 48.7 49.4 49.9 50.8 51.9 52.3 53.1 54.2

NATO Total 37.6 37.8 38.1 38.8 39.5 39.9 | 40.7 41.6

Defence expenditure per capita (US dollars)

NATO Europe 476 466 458 451 451 465 | 482 503

Albania 64 64 61 59 53 52 54 60

Belgium 467 463 449 438 417 421 422 433

Bulgaria* 93 95 104 96 96 100 105 135

Croatia 222 209 199 191 191 178 193 204

Czech Republic 215 210 203 193 220 209 238 261

Denmark 770 791 722 683 670 710 717 755

Estonia 265 313 323 341 364 386 396 422

France 772 773 769 756 745 755 764 787

Germany 565 580 543 533 536 549 579 589

Greece 584 524 494 500 526 548 551 538

Hungary 140 136 128 122 135 154 165 177

Italy 462 428 405 364 343 385 401 406

Latvia** 125 114 124 129 149 215 263 328

Lithuania** 103 103 109 131 175 237 291 345

Luxembourg 405 387 391 406 465 435 564 604

Montenegro 121 111 102 106 102 107 109 129

Netherlands 639 619 580 579 578 601 621 746

Norway 1,318 1,306 1,311 1,352 1,316 1,391 1,413 1,483

Poland** 225 231 231 258 321 297 296 323

Portugal 330 300 306 282 292 286 287 322

Romania** 109 105 114 124 140 143 187 220

Slovak Republic 185 189 172 178 211 215 219 249

Slovenia 306 268 238 226 221 246 251 271

Spain 285 306 269 270 283 254 293 310

Turkey 188 189 194 193 193 207 228 260

United Kingdom 938 856 909 889 856 902 897 899

North America 2,154 2,018 1,881 1,774 1,722 1,734 1,775 1,772

Canada 594 532 487 506 601 582 702 643

United States 2,326 2,183 2,037 1,916 1,848 1,863 1,895 1,898

NATO Total 1,119 1,062 1,006 961 943 957 | 984 997

* Defence expenditure does not include pensions.

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** With regard to 2018, these countries have either national laws or political agreements which call for at least 2% of GDP to be spent on defence annually, consequently these estimates are expected to change accordingly.

Notes: Figures for 2017 and 2018 are estimates. The NATO Europe and NATO Total aggregates from 2017 include Montenegro, which became an Ally on 5 June 2017.

Table 6 : Military personnel

Thousands

2011 2012 2013 2014 2015 2016 2017e 2018e

NATO Europe 2,004 1,956 1,862 1,825 1,740 1,718 | 1,774 1,791

Albania 10

7.9 6.8 6.7 6.2 5.8 6.8 6.8

Belgium 32 31 31 31 30 29 28 27

Bulgaria 29 26 28 27 25 25 25 25

Croatia 16 16 16 15 15 15 15 15

Czech Republic 22 22 20 20 21 23 24 25

Denmark 19 19 18 17 17 17 17 17

Estonia 5.9 6.0 6.3 6.3 6.0 6.1 6.1 6.1

France 227 219 213 207 205 208 208 208

Germany 205 192 184 179 177 178 180 183

Greece 117 110 110 107 104 106 106 105

Hungary 19 19 18 17 17 18 19 19

Italy 192 189 189 183 178 176 175 180

Latvia 4.8 4.7 4.6 4.6 4.8 5.2 5.5 6.3

Lithuania 8.0 8.3 8.4 8.6 12 12 13 15

Luxembourg 0.9 0.8 0.9 0.8 0.8 0.8 0.8 0.8

Montenegro 1.9 1.9 1.9 1.9 1.7 1.7 1.7 1.7

Netherlands 45 44 42 41 41 40 39 41

Norway 21 21 20 21 21 20 20 20

Poland 97 98 100 99 99 102 105 118

Portugal 35 34 33 31 28 30 28 30

Romania 66 66 66 65 64 63 62 69

Slovak Republic 13 13 12 12 12 12 12 13

Slovenia 7.2 7.1 6.9 6.8 6.6 6.5 6.3 6.8

Spain 127 125 122 122 122 121 118 121

Turkey 495 495 427 427 385 359 416 386

United Kingdom 191 184 179 169 141 139 137 145

North America 1,493 1,467 1,450 1,404 1,384 1,372 1,379 1,385

Canada 68

68 68 66 70 71 71 71

United States 1,425 1,400 1,382 1,338 1,314 1,301 1,308 1,314

NATO Total 3,497 3,423 3,312 3,229 3,125 3,090 | 3,153 3,176

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Notes: Figures for 2017 and 2018 are estimates. The NATO Europe and NATO Total aggregates from 2017 include Montenegro, which became an Ally on 5 June 2017.

Table 7a : Distribution of defence expenditure by main category

Percentage of total defence expenditure

2011 2012 2013 2014 2015 2016 2017e 2018e

Equipment (a)

Albania 13.36 14.44 16.29 16.65 8.92 8.01 6.96 10.72

Belgium 6.27 3.57 2.84 3.52 3.44 4.66 6.41 8.20

Bulgaria* 6.33 3.68 4.52 1.03 3.47 9.15 8.10 28.86

Canada 9.67 8.31 11.16 13.03 10.47 10.61 11.02 17.61

Croatia 15.79 14.72 10.72 7.35 10.58 10.09 7.53 13.25

Czech Republic 13.30 14.78 9.49 6.53 11.76 6.70 11.12 12.39

Denmark 9.68 9.03 11.26 10.99 11.50 13.68 10.39 13.43

Estonia 10.11 13.69 14.48 22.15 12.82 17.86 19.22 18.15

France 28.17 30.58 28.56 24.64 25.04 24.44 24.17 23.66

Germany 16.41 16.45 12.74 12.94 11.93 12.21 13.75 14.13

Greece 5.86 7.47 12.06 8.17 10.40 13.45 15.47 12.40

Hungary 12.29 5.84 11.08 7.76 9.75 13.37 15.34 15.08

Italy 11.74 8.87 12.51 10.92 9.72 19.09 20.68 21.12

Latvia 10.78 10.45 12.09 7.55 13.60 19.05 19.57 31.58

Lithuania 9.38 11.20 9.23 14.06 21.55 30.06 31.61 28.88

Luxembourg 21.86 17.11 14.57 22.61 33.33 30.07 42.06 41.03

Montenegro 1.73 4.44 1.32 7.46 5.43 4.46 4.89 9.66

Netherlands 14.43 13.41 12.57 10.68 11.16 14.14 16.80 24.93

Norway 17.04 17.76 18.89 21.17 22.49 24.05 24.70 26.77

Poland 16.13 15.16 13.90 18.84 33.20 21.62 22.04 23.95

Portugal 12.07 9.34 8.65 8.43 8.70 9.95 10.02 12.97

Romania 7.57 4.14 10.71 15.77 19.65 20.43 33.20 34.69

Slovak Republic 7.15 9.56 7.39 11.12 18.28 15.32 17.74 21.05

Slovenia 5.70 1.20 1.27 0.66 1.85 1.02 4.04 8.22

Spain 6.74 22.86 12.37 13.49 14.82 6.65 20.39 23.04

Turkey 24.57 21.21 26.89 25.08 25.13 25.55 30.60 31.55

United Kingdom 22.01 19.54 21.89 22.82 21.75 21.56 22.03 21.68

United States 26.99 26.97 25.83 25.97 25.41 25.05 28.43 26.81

Personnel (b)

Albania 77.07 69.97 75.25 68.05 78.15 68.05 68.20 68.19

Belgium 75.88 78.52 77.34 77.84 78.23 77.11 75.60 72.06

Bulgaria* 67.36 64.71 65.37 72.84 73.66 65.64 68.33 58.04

Canada 47.11 49.10 52.44 50.90 53.76 53.11 55.12 44.89

Croatia 67.17 68.13 68.06 69.25 63.64 67.13 62.73 61.89

Czech Republic 56.28 61.66 62.03 61.40 55.27 61.97 56.19 55.26

Denmark 52.22 49.05 51.74 51.27 52.01 49.51 47.01 46.22

Estonia 32.28 29.75 39.83 38.62 39.56 38.70 34.89 31.75

France 49.35 49.11 49.23 48.59 47.79 47.94 47.98 46.90

Germany 52.29 50.60 49.86 50.67 49.86 48.35 48.75 46.97

Greece 76.03 73.19 74.56 77.18 72.05 73.13 72.19 71.36

Hungary 50.64 47.69 48.96 49.77 48.21 49.66 42.41 43.61

Italy 74.78 77.05 75.00 76.41 77.55 70.79 67.58 65.66

Latvia 51.31 56.15 52.98 52.97 50.06 43.87 36.52 32.92

Lithuania 66.87 66.78 66.53 57.53 48.49 45.50 40.79 41.50

Luxembourg 52.29 54.23 51.10 49.31 42.77 45.56 34.40 32.29

Montenegro 82.88 82.68 87.68 78.53 78.03 75.32 79.56 71.65

Netherlands 54.66 57.54 58.53 56.50 55.51 51.77 50.97 43.69

Norway 43.43 42.38 41.02 39.36 38.70 37.28 36.10 34.32

Poland 57.80 57.34 57.70 51.45 41.96 47.15 49.99 48.52

Portugal 78.30 78.39 79.85 81.27 81.90 81.38 81.52 71.79

Romania 79.11 84.00 78.99 71.15 63.30 65.01 54.67 51.32

Slovak Republic 69.47 66.53 70.14 69.14 56.24 58.72 58.21 52.70

Slovenia 74.63 78.91 80.52 82.31 82.23 76.03 75.05 72.43

Spain 64.81 57.19 68.25 67.34 65.18 72.61 61.64 57.29

Turkey 53.02 56.02 54.58 56.88 56.82 57.60 51.02 45.28

United Kingdom 37.55 38.90 37.85 36.59 36.80 34.63 34.05 37.24

United States 33.01 32.12 34.38 35.45 36.64 45.01 42.07 42.42

* Defence expenditure does not include pensions. (a) Equipment expenditure includes major equipment expenditure and R&D devoted to major equipment. (b) Personnel expenditure includes military and civilian expenditure and pensions.

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Table 7b : Distribution of defence expenditure by main category

Percentage of total defence expenditure

2011 2012 2013 2014 2015 2016 2017e 2018e

Infrastructure (c)

Albania 0.78 0.64 1.17 0.86 1.40 1.37 0.92 1.08

Belgium 1.69 1.59 2.28 1.81 0.93 0.95 1.04 1.49

Bulgaria* 1.53 0.76 0.47 0.63 1.27 0.63 0.83 0.48

Canada 5.48 5.47 4.12 3.81 3.63 3.03 3.13 4.17

Croatia 0.71 0.57 1.21 1.63 2.62 1.70 4.75 1.89

Czech Republic 2.51 1.61 2.72 2.34 3.32 3.91 4.00 4.98

Denmark 1.45 1.24 1.16 0.97 1.09 2.16 1.95 2.22

Estonia 13.57 8.85 11.54 8.20 8.45 12.15 11.27 7.98

France 2.68 3.42 2.30 2.33 2.80 2.70 2.88 3.51

Germany 4.13 3.53 3.55 3.75 3.60 3.39 3.91 3.94

Greece 1.26 0.79 0.63 1.10 0.65 0.58 0.37 0.14

Hungary 1.31 2.11 2.32 1.07 1.21 1.13 1.64 4.54

Italy 1.31 1.02 1.57 1.40 1.30 0.70 0.94 1.92

Latvia 9.29 4.16 6.26 8.89 6.64 12.83 14.21 11.13

Lithuania 1.37 1.47 2.04 2.17 2.16 3.59 3.92 5.09

Luxembourg 7.18 8.20 11.81 10.26 7.79 6.64 4.64 6.85

Montenegro 2.50 0.03 0.09 0.96 2.47 2.41 0.87 2.68

Netherlands 3.77 3.70 2.74 4.77 3.19 3.90 3.34 4.03

Norway 4.22 4.86 5.64 6.00 5.60 6.96 7.35 7.97

Poland 4.80 4.76 5.62 5.47 4.74 4.62 4.21 3.66

Portugal 0.01 0.04 0.04 0.11 0.25 0.06 0.03 0.37

Romania 1.47 1.19 1.16 1.09 1.27 2.77 2.09 4.49

Slovak Republic 1.01 0.37 0.29 0.57 1.99 3.75 2.97 4.96

Slovenia 2.61 2.02 1.33 0.65 0.61 1.14 0.45 0.49

Spain 1.88 0.85 0.67 0.66 0.97 0.97 0.68 0.39

Turkey 2.91 3.70 2.72 2.77 2.56 2.42 2.95 2.38

United Kingdom 1.64 1.91 2.04 1.95 1.63 1.96 1.95 2.27

United States 3.14 2.38 2.08 1.71 1.45 1.22 1.21 1.34

Other (d)

Albania 8.79 14.95 7.30 14.44 11.53 22.57 23.92 20.01

Belgium 16.15 16.31 17.53 16.83 17.40 17.28 16.95 18.25

Bulgaria* 24.78 30.85 29.64 25.51 21.60 24.57 22.74 12.62

Canada 37.75 37.12 32.28 32.26 32.14 33.25 30.73 33.33

Croatia 16.33 16.58 20.01 21.78 23.16 21.08 24.99 22.98

Czech Republic 27.91 21.95 25.75 29.73 29.65 27.43 28.69 27.37

Denmark 36.65 40.68 35.84 36.78 35.40 34.65 40.66 38.13

Estonia 44.04 47.71 34.14 31.03 39.18 31.30 34.62 42.12

France 19.80 16.89 19.91 24.43 24.37 24.92 24.97 25.92

Germany 27.17 29.42 33.84 32.63 34.61 36.05 33.58 34.96

Greece 16.84 18.55 12.75 13.55 16.90 12.84 11.97 16.10

Hungary 35.76 44.35 37.64 41.40 40.83 35.84 40.62 36.77

Italy 12.17 13.06 10.93 11.27 11.42 9.42 10.80 11.30

Latvia 28.62 29.23 28.68 30.59 29.69 24.25 29.70 24.36

Lithuania 22.39 20.56 22.20 26.24 27.79 20.85 23.67 24.53

Luxembourg 18.67 20.46 22.52 17.82 16.11 17.73 18.90 19.83

Montenegro 12.89 12.85 10.91 13.06 14.07 17.80 14.67 16.01

Netherlands 27.14 25.34 26.16 28.05 30.14 30.20 28.90 27.35

Norway 35.31 35.00 34.45 33.46 33.21 31.71 31.84 30.94

Poland 21.27 22.73 22.78 24.24 20.11 26.61 23.76 23.87

Portugal 9.62 12.22 11.46 10.19 9.15 8.61 8.43 14.87

Romania 11.85 10.68 9.13 11.98 15.78 11.79 10.04 9.50

Slovak Republic 22.38 23.55 22.19 19.16 23.49 22.22 21.08 21.29

Slovenia 17.05 17.87 16.88 16.38 15.31 21.80 20.46 18.87

Spain 26.58 19.11 18.71 18.50 19.03 19.78 17.28 19.27

Turkey 19.49 19.07 15.80 15.27 15.49 14.43 15.43 20.79

United Kingdom 38.80 39.64 38.22 38.63 39.82 41.85 41.97 38.80

United States 36.86 38.53 37.72 36.87 36.51 28.73 28.29 29.43

* Defence expenditure does not include pensions. (c) Infrastructure expenditure includes NATO common infrastructure and national military construction. (d) Other expenditure includes operations and maintenance expenditure, other R&D expenditure and expenditure not allocated among above-mentioned categories.

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-14-

NATO defence expenditure

NATO defines defence expenditure as payments ma de by a national government specifically to

meet the needs of its armed forces, those of Allies or of the Alliance. A major component of defence expenditure is payments on Armed

Forces financed within the Ministry of Defence (MoD) budget. Armed Forces include Land, Maritime and Air forces as well as Joint

formations such as Administration and Command, Special Operations Forces, Medical Service, Logistic Command etc. They might also include "Other Forces" like Ministry of Interior troops, national police forces, gendarmerie, carabinieri, coast guards etc. In such cases, expenditure should be included only in proportion to the forces that are trained in military tactics, are equipped as a military force, can operate under direct military authority in deployed operations, and can, realistically, be deployed outside national territory in support of a military force. Also, expenditure on Other Forces financed through the budgets of ministries other than MoD should be included in defence expenditure.

Pension payments made directly by the government to retired military and civilian employees of military departments should be included regardless of whether these payments are made from the budget of the MoD or other ministries.

Defence expenditure includes contributions to eligible NATO-managed trust funds, and expenditure for peacekeeping and humanitarian operations (paid by MoD or other ministries), the destruction of weapons, equipment and ammunition, and the costs associated with inspection and control of equipment destruction are included in defence expenditure.

Research and development (R&D) costs are to be included in defence expenditure. R&D costs should also include expenditure for those projects that do not successfully lead to production of equipment.

Expenditure for the military component of mixed civilian-military activities is included, but only when the military component can be specifically accounted for or estimated.

Expenditure on NATO Common infrastructure is included in the total defence expenditure of each Ally only to the extent of that nation's net contribution.

War damage payments and spending on civil defence are both excluded from the NATO definition of defence expenditure.

NATO uses United States dollars (USD) as the common currency denominator. The exchange rate applied to each Ally is the average annual rate published by the International Monetary Fund (IMF). The values for defence expenditure are expressed in current prices; constant prices; current prices and exchange rates; as well as constant prices and exchange rates.

Note to readers:

Iceland has no armed forces. For nations of the Euro zone, and Montenegro, monetary values in national currency are expressed in Euros for all years. Estonia adopted Euros from 2011, Latvia from 2014, and Lithuania from 2015.

Montenegro joined the Alliance in 2017.

To avoid any ambiguity, the fiscal year has been designated by the year which includes the highest number of months: e.g. 2017 represents the fiscal year 2017/2018 for Canada and United Kingdom, and the fiscal year 2016/2017 for the United States. Because of rounding, the total figures may differ from the sum of their components.

Conventional signs:

e estimated - nil

.. not available | break in continuity of series . decimal point

-15-

Nomenclature of NATO defence expenditure:

1 Operating costs

1.1 Military personnel

1.1.1 Pay and allowances

1.1.2 Employer's contributions to retirement funds

1.1.3 Other

1.2 Civilian personnel

1.2.1 Pay and allowances

1.2.2 Employer's contributions to retirement funds

1.3 Pensions

1.3.1 Paid to military retirees

1.3.2 Paid to civilian retirees

1.4 Operations and maintenance

1.4.1 Ammunition and explosives (excluding nuclear)

1.4.2 Petroleum products

1.4.3 Spare parts

1.4.4 Other equipment and supplies

1.4.5 Rents

1.4.6 Other operations and maintenance

2 Procurement and construction

2.1 Major equipment

2.1.1 Missile systems

2.1.2 Missiles (conventional weapons)

2.1.3 Nuclear weapons

2.1.4 Aircraft

2.1.5 Artillery

2.1.6 Combat vehicles

2.1.7 Engineering equipment

2.1.8 Weapons and small arms

2.1.9 Transport vehicles

2.1.10 Ships and harbour craft

2.1.11 Electronic and communications equipment

2.2 National military construction

2.3 NATO common infrastructure

2.3.1 Expenditure as host nation

2.3.2 Payments to other nations

2.3.3 Receipts from other nations

2.3.4 Land and utilities

3 Research and development

3.1 Devoted to major equipment

3.2 Other

4 Other expenditure

4.1 NATO-managed trust funds

4.2 Other costs

5 Total

Main categories of defence expenditure:

- Equipment (Table 7a) - lines 2.1 + 3.1 - Personnel (Table 7a) - lines 1.1 + 1.2 + 1.3 - Infrastructure (Table 7b) - lines 2.2 + 2.3 - Other (Table 7b) - lines 1.4 + 3.2 + 4