The Slovak defense budget is set to see a significant and consistent increase across the 2024-29 forecast period as it procures major platforms and the country’s government responds to a deteriorating security environment in Europe. As a NATO member, Slovakia has committed to meeting the minimum 2% of GDP spending target, and already attained this in 2021 ahead of the 2024 goal set during a NATO summit in Wales in 2014 in response to the Russian annexation of Crimea. The country is expected to maintain its defense budget above NATO’s target in the coming years, says GlobalData, a leading data and analytics company.

GlobalData’s latest report, “Slovakia Defense Market 2024-2029,” reveals that Slovakia’s defense budget is set to reach $30.5 billion in 2029, up from $25.8 billion in 2020. The acquisition budget, which was $0.9 billion in 2020, will rise significantly to $9.2 billion by 2029. The personnel spend, which is estimated at $18.2 billion in 2024, will remain stable at $18.3 billion by the end of the forecast period.

Wilson Jones, Defense Analyst at GlobalData, comments: “Slovakia’s defense budget had already increased moderately over the previous years as a result of a decision to undertake the most extensive modernization of the Slovak Armed Forces since their inception. Currently, it spends 2.2% of GDP on defense in 2024, which is an uptick from the 1.8% of GDP that was spent by the government in 2020.”

Since the start of the Ukraine-Russia conflict in 2022, several representatives of the Slovakian MoD have suggested that spending at 2% should be the baseline rather than the target, although the government has not as of yet committed to this as official policy. Slovakia has also suggested increasing defense coordination with other Central European countries, such as the regional leader Poland, to reduce inefficiencies and help achieve 2.5% GDP spending in the near future.

Jones adds: “Slovakia is also investing in missile defense and air defense. At the end of 2023, the country acquired two MANTIS (Modular, Automatic, and Network-capable Targeting and Interception System) air defense systems from Germany for EUR120 million ($135 million).” It is also officially seeking to join the Sky Shield initiative, a European-wide air defense network.”

Sky Shield combines the short, medium, and long range air defense systems of all members to create a continent-wide umbrella defending against any attacking missile. Currently, it includes the Arrow 3, Patriot, and IRIS-T platforms. Furthermore, Slovakia is considering the joint purchase of air defense systems, such as Israel’s SPYDER systems, to further contribute to air defense.

Jones concludes: “Defense spending per capita in Slovakia has grown substantially, increasing from $376 in 2018 to $507 in 2024, registering a compound annual growth rate (CAGR) of 7.47% over the period. With a steady growth in spending on major procurement programs, it is forecast to rise to $702 in 2029.  Overall, in per capita and percent GDP terms, Slovakia is a leader among NATO members.”