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Investing.com -- The European defense sector saw a 13.8% growth in 2024 compared to the previous year, generating €183.4 billion ($213 billion) in turnover, according to a report released Tuesday by the Aerospace, Security and Defense Industries Association of Europe.
This marks the fourth consecutive annual increase for the sector, which the report attributes to rising defense budgets following years of underinvestment. The growth acceleration came in the wake of Russia’s full-scale invasion of Ukraine.
Employment in the European defense industry also expanded significantly, with an 8.6% increase bringing the total workforce to 633,000 jobs.
Despite the positive growth figures, the trade association identified several ongoing challenges facing the sector.
These include supply-chain bottlenecks, shortages of critical raw materials and electronic components, high energy costs, a tight labor market, and trade restrictions resulting from sanctions imposed on Russia.
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