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Research and Markets: Portugal's Defense Budget Was US$3.14 Billion in 2012 and, During the Review Period, Recorded a CAGR of 1.7% Says Latest Report

DUBLIN--(BUSINESS WIRE)-- Research and Markets (http://www.researchandmarkets.com/research/r56d2j/the_portuguese) has announced the addition of iCD Research's new report "The Portuguese Defense Industry - Market Opportunities and Entry Strategies, Analyses and Forecasts to 2017" to their offering.

Portugal's Defense Ministry budget was US$3.14 billion in 2012, and recorded a CAGR of 1.7% during the review period. The Portuguese government is facing economic constraints due to the country's high level of fiscal debt, which is expected to reach 115% of GDP by 2013. The debt is expected to be reduced to 4.5% of GDP by 2017 through the use of austerity measures, which will include lengthening t-bill maturities and implementing defense expenditure cuts. The government has made a 40% cut in the budget for the 2006 military funding program (LPM) until 2013, which establishes the long-term objectives for modernizing Portugal's armed forces. The government has also announced that it will not make any new commitments for military equipment purchases until 2013.

Portugal's homeland security expenditure falls under the budget of the Ministry of Internal Administration (MIA). The homeland security budget stands at US$2.2 billion in 2012, registering a CAGR of -3.08% during the review period and, during the forecast period, the budget is expected to grow at a CAGR of 7.68% to reach US$3.01 billion by 2017. The fall in the growth rate is due to the austerity measures adopted by the government.

Portugal's defense imports increased at a robust pace in 2010 due to the acquisition of submarines and frigates for its navy, C-295 transport aircraft from pan-European corporation EADS for its air force, and Pandur 2 armored vehicles and Leopard 2A6 battle tanks for its army. All these purchases were made as part of the country's LPM program. However, the imports saw a steep decline in 2011, reaching a value of 115%. During the forecast period the country's defense imports are expected to decline as austerity measures lead to 40% cuts in planned LPM funding during 2010-2013. The government has also announced that it will not make any new commitments to purchase equipment until 2013.

Companies Mentioned

- OGMA - Indústria Aeronáutica de Portugal SA

- EID - Empresa de Investigação e Desenvolvimento de Electrónica SA

- Edisoft, EMPORDEF TI Inc.

- ENVC

- Indra Sistemas Portugal

- AgustaWestland Portugal

- Arsenal Alfeite

- Fabrequipa

- Critical Software

- Aero Voo de Portugal

- LDA

- Instituto Geográfico do Exército

For more information visit http://www.researchandmarkets.com/research/r56d2j/the_portuguese.

Source: iCD Research

Research and Markets
Laura Wood, Senior Manager.
press@researchandmarkets.com
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716
Sector: Aerospace and Defence

Source: Research and Markets