Despite the war in Ukraine: sales of weapons manufacturers are falling - analysis by a financial expert

Despite the war in Ukraine: sales of weapons manufacturers are falling - analysis by a financial expert

According to a report by www.stern.de, Despite the Ukraine war: sales of weapons manufacturers are falling

Sales of the world's largest defense companies fell in 2022 despite increased demand caused by the war in Ukraine. This decrease is 3.5 percent compared to the previous year and amounted to 597 billion dollars.

This decline in sales is largely due to lower profits from US companies that have suffered due to supply chain problems and labor shortages during the coronavirus pandemic. U.S. sales fell 7.9 percent but still accounted for 51 percent of total 2022 profits.

The Russian defense industry also saw its profits fall by twelve percent due to Western sanctions and a lack of payments from the Russian state.

In the Middle East, Asia and Oceania, weapons manufacturers were able to respond more quickly to growing demand, with Turkish defense companies in particular benefiting from this.

The second largest arms manufacturer, China, increased its revenue by 2.7 percent to $108 billion.

According to an assessment by the International Peace Research Institute in Stockholm, military spending is expected to continue to rise, which could ultimately lead to an increase in the profits of defense companies. These developments could have an impact on the global arms market and influence the financial sector.