Global military expense rise may hit trade

Even before Russia attacked Ukraine in February this year, the major powers had started increasing their military spending

The geopolitical tensions are forcing many governments to shift the priorities in allocation of resources towards better military preparedness. This can lead to lower allocations for other purposes bringing down the consumption and investment levels globally, impacting the production and global trade in non-military goods in the short and medium term.

Since Russia invaded Ukraine six months back, many European countries have felt the need to not rely solely on the security cover that the United States offers through the North Atlantic Treaty Organisation (NATO). Germany, in particular, and many other countries in Europe have decided to spend more on their