Taiwan faces economic challenges to increase the defense budget

Taiwan is facing economic problems, which led to a decrease in the defense budget percentage increase.

Bloomberg reported on this.

The country is increasing its defense budget by 4.6 percent in 2024, the lowest since 2018. At the same time, Beijing is fully implementing a program to modernize its troops for combat operations on the islands.

The government will increase the country’s defense budget by $19 billion in 2024, which is 2.5 percent of its GDP.

“Taiwan must continue to strengthen its self-defense capabilities, demonstrate its resolve in self-defense, safeguard national security and interests, and seek greater international support,” President Tsai Ing-wen noted.

The problems with the budget increase occur amid China’s full readiness in the Taiwan Strait.

Last week, China conducted naval and air force exercises to protest Vice President Lai Ching-te’s transit through the United States on his way to Paraguay, where he met with U.S. officials.

Officials of the Ministry of Defense of the People’s Republic of China noted that the exercises were held as a warning to the “separatist” regime of Taiwan.

Taiwan’s economy is currently facing difficult times. For the 11th month in a row, the country’s exports have been declining, which also adjusts the defense budget plans.

Last month, Taiwan Semiconductor Manufacturing Co., the island’s largest company, surprised investors by cutting its full-year revenue forecast, predicting a 10% drop in sales this year.

Militarnyi previously reported that Taiwan has launched a domestic HF-2E land-attack cruise missile.

The basic version has an approximate range between 300 and 600 kilometers.

Both versions have a GPS-based inertial navigation guidance system with an additional TERCOM navigation system.