WASHINGTON: Revenues in the global aerospace and defense sector are expected to grow by 3 percent in 2016 after a 0.5 percent decline in 2015, according to a new forecast by Deloitte Touche Tohmatsu.
The rebound will likely be driven by strong passenger traffic, continued demand for commercial aircraft from growing economies like India and China, and an expected recovery in global military spending fueled by tensions in the Middle East, the company said in its annual outlook for the sector.
It said U.S. military spending had likely bottomed out in 2015 and was slated to rise slightly in the fiscal 2016 year which began Oct. 1. Global security threats were also fueling growth in defense budgets in many other countries, it said.