Slovakia's defence budget is projected to increase consistently from 2024 to 2029, surpassing NATO's 2% of GDP target in the coming years, according to data and analytics company GlobalData.
This comes as the nation invests in major military platforms amid a challenging security landscape in Europe.
Slovakia achieved NATO’s 2% GDP target milestone in 2021, ahead of the 2024 deadline set at the 2014 NATO summit in response to the Russian annexation of Crimea.
The ‘Slovakia Defense Market 2024-2029’ report by GlobalData forecasts the defence budget to reach $30.5bn (€29bn) by 2029, up from $25.8bn in 2020.
Spending as a percentage of GDP is expected to reach a peak of 2.75% in 2029, driven by several upcoming procurements, including a new fleet of CV90 tracked infantry fighting vehicles, main battle tanks, and upgraded F-16V multirole fighter aircraft.
Slovakia allocates 2.3% of its GDP to defence in 2024, up from 1.8% in 2020.
The acquisition budget is set to rise from $0.9bn in 2020 to $9.2bn by 2029, while personnel spending will remain stable, estimated at $18.2bn in 2024 and $18.3bn by 2029.
Since the onset of the Ukraine-Russia conflict in 2022, Slovakian Ministry of Defense representatives have suggested that 2% of GDP should serve as a baseline for defence spending rather than a target.
Slovakia is also exploring enhanced defence coordination with Central European countries, including Poland, to improve efficiency and potentially achieve 2.5% GDP spending in the future.
GlobalData defence analyst Wilson Jones said: “Slovakia’s defence budget had already increased moderately over the previous years as a result of a decision to undertake the most extensive modernisation of the Slovak Armed Forces since their inception. Currently, it spends 2.2% of GDP on defence in 2024, which is an uptick from the 1.8% of GDP that was spent by the government in 2020.”
“Defence spending per capita in Slovakia has grown substantially, increasing from $376 in 2018 to $507 in 2024, registering a compound annual growth rate (CAGR) of 7.47% over the period. With a steady growth in spending on major procurement programmes, it is forecast to rise to $702 in 2029. Overall, in per capita and percent GDP terms, Slovakia is a leader among NATO members.”
Additionally, Slovakia is seeking to join the Sky Shield initiative, a European air defence network.
In 2022, 14 NATO member states and Finland signed a Letter of Intent in Belgium to develop the European Sky Shield Initiative, which integrates short, medium, and long-range air defence systems across member states.
Current systems include Arrow 3, Patriot, and IRIS-T platforms.
Slovakia began receiving Patriot missile defence systems in March 2022 and is considering joint procurement of systems such as Israel's SPYDER to enhance its air defence capabilities.
Jones added: “Slovakia is also investing in missile defence and air defence. At the end of 2023, the country acquired two MANTIS (Modular, Automatic, and Network-capable Targeting and Interception System) air defence systems from Germany for €120m ($135m).”
