Croatia Defence and Security Report 2016
BMI View: Croatia's continued downsizing of its already small armed forces, the lack of an immediatethreat to its security environment and a still-weak - albeit improving - economic outlook, will limit thecountry's defence expenditure going forward. As such, the domestic sector - which only has strongcapabilities in land armaments and personnel equipment segments - will have to continue looking to foreignmarkets for opportunities. The limited procurement that the defence ministry is likely to undertake willprimarily be met by foreign suppliers with more technologically advanced capabilities. That said, we notethat owing to budget limitations, many of these purchases will remain with second-hand or overstockpurchases. A return to economic growth does brighten the outlook for defence spending somewhat. In 2016,the decade-long decline in defence spending will be halted. We expect Croatia's defence expenditure tocome in at HRK4.42bn (USD608mn) in 2016.
In the Ministry of Defence (MoD)'s 2015-2024 Long Term Development Plan, it states that Croatiandefence expenditure will be maintained at 2014 levels of 1.3% of GDP for at least the next three years.
In the same document, the MoD outlines plans to continue streamlining of its armed forces, reducingpersonnel numbers to 15,000 by the end of 2017.
The Croatian armed forces' Patria armoured personnel carriers (APCs) are undergoing upgrade andmaintenance. The units will enter services by end-2016, equipped with modern anti-armour systems,remote weapon stations of 30mm calibre and communication systems.
The defence ministry confirmed in November 2015, that the country's army and air force will soon bedonated 16 used OH-58D Kiowa helicopters by the US. The aircraft come from the US' surplusinventory.
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