Canada’s military spending to reach NATO’s 2% GDP target early

Published 09/06/2025, 15:06
Canada’s military spending to reach NATO’s 2% GDP target early

Investing.com -- Canada’s Liberal government, led by Prime Minister Mark Carney, has announced plans to increase the country’s military spending to meet NATO’s 2% GDP target this fiscal year. This move comes much earlier than the previously scheduled date of 2032, a commitment made by the prior Liberal administration.

The decision to expedite military spending comes after years of pressure from the United States and other NATO allies, urging Canada to increase its defense funding. At present, Canada spends approximately 1.4% of its GDP on its armed forces.

Prime Minister Carney, in a speech delivered in Toronto on Monday, emphasized the urgency of the situation. He stated, "Now is the time to act with urgency, force, and determination."

The increased funding will be directed towards various areas within the armed forces. This includes a pay raise for military personnel and the procurement of new equipment and technology. The list of acquisitions includes new submarines, aircraft, ships, armed vehicles, and artillery. Additionally, the funds will be used to purchase new radar systems, drones, and sensors for monitoring the sea floor and the Arctic region.

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