We've reached our goal: defence spending is at 2% of the GDP. But don't celebrate yet — it's a pretty dopey target.
Australia has a bipartisan commitment to spend 2% of its GDP on defence. But how was that decided?
As this chart shows, by spending just under 2% on defence we are above the global median as far as share of the economy goes -- but still mid-pack.
Australia has fallen short of the 2% target for several years, but this year, with GDP in retreat thanks to the coronavirus recession, we might finally achieve it.
Journalist and economist @jasemurphy
Jason Murphy is an economist and freelance journalist. He has worked at The Australian Financial Review and for the Republic of Nauru and the Australian Treasury. He blogs at Thomas the Think Engine.
Join the conversation
The Crikey comment section is members-only content. Please login or sign up for a FREE trial to engage in the commentary.