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amount the world spent on arms has fallen for first time since 1998. This is according to annual review of Stockholm International Peace Research Institute (SIPRI). It said global military spending in 2012 fell to $1.75 trillion, drop of half per cent from 2011. That figure is roughly 2.5 per cent of world's GDP, or about $250 for every person on Earth. USA was biggest spender, although its share fell below 40 per cent for first time. USA and its NATO allies spent one trillion dollars last year on their militaries. SIPRI said the decline is largely due to decrease in amount spent on fighting wars, particularly with military action in Afghanistan winding down.

SIPRI noted that while spending is falling in America and Europe, it is on rise elsewhere. SIPRI spokesman Sam Perlo-Freeman said: “We are seeing what may be beginning of shift in balance of world military spending from rich Western countries to emerging regions." He said budgets in China, Russia, Middle East and North Africa were on rise. China is now world's second-biggest spender after its budget rose by 7.8 per cent last year. However, this expenditure does not mean China is second in terms of world military power. SIPRI said: "China in some respects is still well behind Europe, even though it now spends as much as Britain, France and Germany combined."

 


 
 

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