Taiwan defence spend to outpace GDP growth as China threat rises

22/8/2024 13:07

        Taiwan's defence spending will rise 7.7% next year, outpacing expected economic growth, the cabinet said on Thursday, as the island adds more fighter jets and missiles to strengthen deterrence against a rising threat from Beijing.
        
        China, which views democratically-governed Taiwan as its own territory, has ramped up military and political pressure over the past five years to assert those claims, which Taipei strongly rejects.
        
        Taiwan's cabinet said following a regular weekly meeting that 2025 defence spending would rise 7.7% year-on-year to T$647 billion, accounting for 2.45% of gross domestic product - up from 2.38% this year - and exceeding the government's expectation for economic growth of 3.26% for the year.
        
        The spending includes a special budget worth T$90.4 billion to buy new fighter jets and ramp up missile production. That was part of the military's extra spending worth T$240 billion announced in 2021 over five years.