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Portuguese Military Spending in the NATO Context: A Short Illustrative Paper

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  • Ricardo Ferraz

    (ISEG Research—Lisbon School of Economics & Management (ISEG), Universidade de Lisboa, Rua do Quelhas, nº 6, 1200-781 Lisbon, Portugal
    RCM2+, Research Centre for Asset Management and Systems Engineering, Universidade Lusófona, Campo Grande 376, 1749-024 Lisbon, Portugal)

Abstract

In the context of strong geopolitical tensions worldwide, this paper aims to present a brief illustrative analysis of Portuguese military spending within the NATO context. It was concluded that over the past decades, this variable has consistently remained below 2% of the GDP, with Portugal recording one of the lowest values in NATO in 2024. When broken down by component, personnel expenses represented the largest share of Portugal’s military spending and ranked among the highest in NATO. This seems to be mainly because other categories show very low levels of expenditure, possibly due to budgetary constraints. When assessed on a per capita basis or in relation to the size of the territory, personnel expenses were found to be close to the NATO average, despite Portugal having one of the lowest numbers of military personnel per 100,000 inhabitants. In contrast, equipment expenses were well below the NATO average. Thus, considering the Portuguese government’s intention to increase defense spending, it is expected that the coming years will bring greater investment in the production and/or acquisition of equipment, along with policy measures aimed at increasing the number of military personnel.

Suggested Citation

  • Ricardo Ferraz, 2025. "Portuguese Military Spending in the NATO Context: A Short Illustrative Paper," Social Sciences, MDPI, vol. 14(9), pages 1-15, September.
    • Handle: RePEc:gam:jscscx:v:14:y:2025:i:9:p:566-:d:1753738
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    References listed on IDEAS

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    1. Murdoch, James C. & Sandler, Todd, 1984. "Complementarity, free riding, and the military expenditures of NATO allies," Journal of Public Economics, Elsevier, vol. 25(1-2), pages 83-101, November.
    2. Smith, Ronald P., 1980. "Military expenditure and investment in OECD countries, 1954-1973," Journal of Comparative Economics, Elsevier, vol. 4(1), pages 19-32, March.
    3. Ricardo Ferraz, 2023. "The Portuguese budgetary costs with First World War: a comparative perspective," European Review of Economic History, European Historical Economics Society, vol. 27(2), pages 278-301.
    4. Ricardo Ferraz, 2020. "The Portuguese development plans in the postwar period: How much was spent and where?," Investigaciones de Historia Económica - Economic History Research (IHE-EHR), Journal of the Spanish Economic History Association, Asociación Española de Historia Económica, vol. 16(01), pages 45-55.
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