Latvia's defense budget set for 70% rise by 2028

Following Russia's invasion of Ukraine in 2022, projections indicate that Latvia's defense budget will rise from $1 billion in 2023 to approximately $1.7 billion in 2028, reflecting the country's overall military expenditure growth.

Latvia's defense expenditures are projected to see a compound annual growth rate (CAGR) of 10.5% from 2024 to 2028, following a previous CAGR of 9% from 2019 to 2023.

Although the small size of the Latvian armed forces limits defense procurement, Latvia will continue to acquire armored vehicles, tactical trucks, missile defense systems, and helicopters as part of a plan to increase spending over the next 10 years.

Latvia is also regarded as a critical Baltic ally by NATO as part of the Enhanced Forward Presence (EFP).

Before 2020, Latvia had supplied the United Kingdom with 48 CVR-T Spartan-tracked reconnaissance vehicles for land defense. The Latvian Army also possesses 41 M109A50 Paladin self-propelled howitzers.

Latvia, a former Soviet state bordered by Russia to the east and Belarus, an ally of Russia to the southeast, embraced Western democracy and joined the European Union and NATO following the fall of the Soviet Union.

Source: Newsroom