Canada to Boost Defense Spending by $30 Billion, Potentially Benefiting Defense Contractors

Canada's federal government has announced a $30 billion increase in defense spending to meet its NATO obligations. The MOVE aims to close the gap between current spending—1.45% of GDP—and the alliance's 2% target by the 2025-26 fiscal year.

Prime Minister Mark Carney's administration projects $52.3 billion in defense expenditures for the current fiscal period, requiring an additional $29.6 billion to reach NATO benchmarks. This spending surge could benefit major defense contractors including Lockheed Martin, Northrop Grumman, and RTX Corp.

The decision marks a significant policy shift for Canada, historically one of NATO's lowest defense spenders relative to GDP. The funding increase reflects growing geopolitical tensions and alliance pressure for member states to fulfill financial commitments.