The Effects of Worldwide Increased Defence Spending on Austrian Foreign Trade

The study examines the effects of the global expansion of defence spending on Austrian foreign trade. Against the backdrop of rising EU and NATO budgets and geopolitical tensions, it focuses in particular on the opportunities and risks this presents for a small, open economy such as Austria. The focus is on: 1. the importance of defence goods for imports and exports, 2. quantifying the direct, indirect, and induced effects of current and expanded defence spending by selected countries on Austria's foreign trade through 2035, 3. identifying market share potential along international value chains, and 4. developing economic policy options.